Systems and methods for generating computerized databases

ABSTRACT

Embodiments described herein relate to systems and methods for electrical computers, digital processing, and visual display that involve generation, storage, retrieval, and visualizations of data relating to a computerized cash flow ledger entries database. Embodiments described herein relate to systems and methods for electrical computers, digital processing, and visual display that involve modifying databases to create a new computerized database containing only data relating to cash transactions and to generate reports, including a Statement of Cash Flows by the Direct Method.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present application claims the benefit of U.S. Provisional Patent Application No. 63/282,648, filed Nov. 23, 2021, the disclosure of which is hereby incorporated by reference in its entirety.

FIELD

The improvements generally relate to the field of electrical computers, digital processing systems, and visual display systems.

INTRODUCTION

Embodiments described herein relate to systems and methods for electrical computers, digital processing, and visual display that involve generation, storage, retrieval, and visualizations of data relating to accrual accounting records. Embodiments described herein relate to systems and methods for electrical computers, digital processing, and visual display that involve modifying databases to create a new computerized database containing only data relating to cash transactions. The new computerized database is accessible by a client device having an interface and/or a cloud server to produce different cash accounting reports, including a statement of cash flows by the direct method. Embodiments described herein relate to systems and methods for processing large databases with thousand or millions of records, and generating improved interfaces with visualizations of the processed data.

SUMMARY

In accordance with an aspect, there is provided systems and methods for generating computerized databases.

In accordance with another aspect, there is provided a system for electrical computers, digital processing, and visual display, the system comprising a non-transitory memory storing instructions, and a hardware processor for generation and storage of a computerized cash flow ledger entries database, the hardware processor further for retrieval and visualizations of data from the cash flow ledger entries database to implement a statement of cash flows by a direct process.

In some embodiments, the memory stores general ledger entries and the hardware processor automatically extracts cash related entries from the general ledger entries, modifies the extracted cash related entries from the general ledger entries, creates cash flow ledger entries from the modified cash related entries, and populates the cash flow ledger entries database with the cash flow ledger entries.

In some embodiments, the memory stores customer ledger entries and vendor ledger entries, and wherein the hardware processor creates additional cash flow ledger entries by extracting and modifying data from the customer ledger entries, the vendor ledger entries, and the general ledger entries, wherein the hardware processor populates the cash flow ledger entries database with the additional cash flow ledger entries.

In accordance with another aspect, there is provided a method for electrical computers, digital processing, and visual display, the method comprising, using a hardware processor for generation and storage of a computerized cash flow ledger entries database, further for retrieval and visualizations of data from the cash flow ledger entries database to implement a statement of cash flows by a direct process.

In some embodiments, the method involves: storing general ledger entries in the memory, and using the hardware processor to automatically extract cash related entries from the general ledger entries, modify the extracted cash related entries from the general ledger entries, create cash flow ledger entries from the modified cash related entries, and populate the cash flow ledger entries database with the cash flow ledger entries.

In some embodiments, the method involves: storing customer ledger entries and vendor ledger entries in the memory, and using the hardware processor to create additional cash flow ledger entries by extracting and modifying data from the customer ledger entries, the vendor ledger entries, and the general ledger entries, and using the hardware processor to populate the cash flow ledger entries database with the additional cash flow ledger entries.

In accordance with another aspect, there is provided a system for electrical computers, digital processing, and visual display, the system comprising a non-transitory memory storing instructions, and a hardware processor for modifying databases to create a new computerized database containing only data relating to cash transactions, wherein the new computerized database is accessible by a client device having an interface and a cloud server to produce different cash accounting reports, including a statement of cash flows by the direct method.

In accordance with another aspect, there is provided a method for electrical computers, digital processing, and visual display, the method comprising modifying databases to create a new computerized database containing only data relating to cash transactions, wherein the new computerized database is accessible by a client device having an interface and a cloud server to produce different cash accounting reports, including a statement of cash flows by the direct method.

Many further features and combinations thereof concerning embodiments described herein will appear to those skilled in the art following a reading of the instant disclosure.

DESCRIPTION OF THE FIGURES

FIG. 1 shows an example system for generating computerized databases;

FIG. 2 shows an example method of an accounting application program for generating computerized databases;

FIG. 3 shows an example method of a sub-process for generating computerized databases by automatically separating cash and non-cash general ledger entries;

FIG. 4 shows an example method of a sub-process for generating computerized databases by automatically creating additional cash flow ledger entries;

FIG. 5 shows an example method of a sub-process for generating computerized databases by automatically creating additional cash flow entries;

FIG. 6 shows an example method of generating a cash flow statement (CSF) by Direct Method from cash basis accounts;

FIG. 7 shows an overview of accrual accounting as compared with cash basis accounting;

FIG. 8 shows a summary of the sub-process of FIG. 3 ;

FIG. 9 shows a summary of the sub-process of FIG. 4 ; and

FIG. 10 shows a summary of the sub-process of FIG. 5 .

DETAILED DESCRIPTION

Embodiments described herein relate to systems and methods for electrical computers, digital processing, and visual display that involve generation, storage, retrieval, and visualizations of data relating to accrual accounting records. Embodiments described herein relate to systems and methods for electrical computers, digital processing, and visual display that involve modifying databases to create a new computerized database. Embodiments described herein relate to systems and methods for processing large databases with thousand or millions of records, and generating improved interfaces with visualizations of the processed data.

There are two methods of accounting which are used by businesses and organizations to track their performance, calculate their taxes and plan for their future. These are methods are (1) accrual accounting; and (2) cash basis accounting.

The cash basis of accounting is the simpler of the two methods. The cash basis of accounting records economic events only when cash is received or paid. Thus, revenue and expense entries are recorded in a database only when cash is received or paid.

The accrual basis of accounting records economic events when they occur which may be before cash changes hands. Thus, revenue entries are recorded in a database when it is earned and expense entries are recorded in a database when they are incurred.

Accrual basis of accounting is required to follow certain rules and regulations to be in accordance with Generally Accepted Accounting Principles (GAAP). For example, in the United States of America, the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission set out GAAP. As another example, the International Accounting Standards Board (IASB) specifies the GAAP for many other countries.

Cash basis accounting is not required to follow any prescribed rules and regulations and is not considered to be in accordance with GAAP. An overview is given in FIG. 7 .

The accrual basis of accounting and cash basis of accounting are two distinct methods of accounting. If a business or organization desires information from the both the accrual basis of accounts and the cash basis of accounts, it is required to maintain two distinct ‘books’ or sets of accounts. This requirement to maintain two distinct ‘books’ of accounts is problematic as it requires double the effort and because it is impractical to keep the two ‘books’ of accounts of synchronized due to the number of transactions. Errors invariably occur as the accounting entries may be reflected with different amounts and be charged to different accounts between the two sets of books. Also, a reversal or error correction in one set of ‘books’ may not be reflected in the other.

Some of the produced financial statements from these two methods are shown in the following table.

Accrual Basis Cash Basis Income Statement-Accrual Basis Income Statement-Cash Basis Balance Sheet-Accrual Basis Balance Sheet-Cash Basis Cash Flow Statement-Indirect Cash Flow Statement-Direct Method Method (CFS-Indirect Method) (CFS-Direct Method)

The financial statements derived from accrual basis and cash basis, even though they have similar names, give different measures of financial performance for an entity. Accrual basis accounts gives a more complete and long-term view of financial performance. Cash basis accounts focus more on the liquidity of the business and the ability to meet obligations in the short term.

Embodiments described herein relate to systems and methods for electrical computers, digital processing, and visual display that involve a cash flow statement by direct method (CFS by Direct Method) including the generation of a computerized database and an interface for generating reports that are considered more informative and useful when compared to cash flow statement by indirect method (CFS by Indirect Method). Sample cash flow statements of both types are shown in the following example tables:

ANNEXURE 1 COMPANY M CONSOLIDATED STATEMENT OF CASHFLOWS (DIRECT METHOD) FOR THE YEAR ENDED DEC. 31, 19X1 lncrease/(Decrease) in Cash and Cash Equivalents Cash flows from operating activities: Cash received from customers $13,850 Cash paid to suppliers and employees (12,000) Dividend received from affiliate 20 Interest received 55 Interest paid (net of amount capitalized) (220) Income taxes paid (325) Insurance proceeds received 15 Cash paid to settle lawsuit for patent infringementNet (30) cash provided by operating activities $1,365 Cash flows from investing activities: Proceeds from sale of facility 600 Payment received on note for sale of plant 150 Capital expenditures (1,000) Payment for purchase of Company S, net of cash acquiredNet (925) cash used in investing activities (1,175) Cash flows from financing activities: Net borrowings under line-of-credit agreement 300 Principal payments under capital lease obligation (125) Proceeds from issuance of long-term debt 400 Proceeds from issuance of common stock 500 Dividends paid (200) Net cash provided by financing activities 875 Net increase in cash and cash equivalents 1,065 Cash and cash equivalents at beginning of year 600 Cash and cash equivalents at end of year $1,665

ANNEXURE 2 COMPANY M CONSOLIDATED STATEMENT OF CASHFLOWS (INDIRECT METHOD) FOR THE YEAR ENDED DEC. 31, 19X1 Increase (Decrease) in Cash and Cash Equivalents Cash flows from operating activities: Net income $760 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization $445 Provision for losses on accounts receivable 200 Gain on sale of facility (80) Undistributed earnings of affiliate (25) Payment received on installment note receivable for sale 100 of inventory Change in assets and liabilities net of effects from purchase of Company S: Increase in accounts receivable (215) Decrease in inventory 205 Increase in prepaid expenses (25) Decrease in accounts payable and accrued expenses (250) Increase in interest and income taxes payable 50 Increase in deferred taxes 150 Increase in other liabilities 50 Total adjustments 605 Net cash provided by operating activities 1,365 Cash flows from investing activities: Proceeds from sale of facility 600 Payment received on note for sale of plant 150 Capital expenditures (1,000) Payment for purchase of Company S, net of cash acquiredNet (925) cash used in investing activities (1,175) Cash flows from financing activities: Net borrowings under line-of-credit agreement 300 Principal payments under capital lease obligation (125) Proceeds from issuance of long-term debt 400 Proceeds from issuance of common stock 500 Dividends paid (200) Net cash provided by financing activities 875 Net increase in cash and cash equivalents 1,065 Cash and cash equivalents at beginning of year 600 Cash and cash equivalents at end of year $1,665

FIG. 1 shows an example system 100 for generating computerized databases, such as a cash flow ledger entries database 38. The system 100 involves electrical computers, digital processing, and visual display. The system 100 has an application server 10 with a non-transitory memory 30 storing cash accounting application program (CAAP) instructions 42 for a cash accounting application program (CAAP), and a hardware processor 20 for the automatic generation and storage of a computerized cash flow ledger entries database 38. The hardware processor 20 is configured for automatic retrieval and visualizations of data from the cash flow ledger entries database 38 to implement a CFS by Direct Method.

In some embodiments, the memory 30 stores general ledger entries 32. The hardware processor 20 automatically extracts cash related entries from the general ledger entries 32, modifies the extracted cash related entries from the general ledger entries 32, creates cash flow ledger entries from the modified cash related entries, and populates the cash flow ledger entries database 38 with the cash flow ledger entries. In some embodiments, the memory 30 stores customer ledger entries 34 and vendor ledger entries 36. The hardware processor 20 creates additional cash flow ledger entries by extracting and modifying data from the customer ledger entries 34, the vendor ledger entries 36, and the general ledger entries 32. The hardware processor 20 populates the cash flow ledger entries database 38 with the additional cash flow ledger entries.

The hardware processor 20 reads databases to create a new cash flow ledger entries database 38 containing only data relating to cash transactions. The new cash flow ledger entries database 38 is accessible by a client device 60 having an interface and a cloud server 70 to produce different cash accounting reports, including a CFS by the Direct Method. The hardware processor 20 can transform or modify data using code to create the new cash flow ledger entries database 38. The code (e.g., the CAAP instructions 42) controls the transformation to protect data integrity by indicating how data read from different database sources is modified for the new cash flow ledger entries database 38. The hardware processor 20 can store a database source identifier for data elements stored therein to support traceability.

Accordingly, the system 100 involves electrical computers, digital processing, and visual display devices. The system 100 has an application server 10 with a non-transitory memory 30 storing instructions cash account application program (CAAP) instructions 42, and a hardware processor 20 for generation, storage, retrieval, and visualizations of data relating to cash flow ledger entries database 38. The hardware processor 20 can modify databases to create a new computerized database 38 containing only data relating to cash transactions (e.g. cash flow ledger entries). The hardware processor 20 extracts data from general ledger entries 32, customer ledger entries 34, vendor ledger entries 36 to populate and create a new computerized cash flow ledger entries database 38 containing only data relating to cash transactions (e.g. cash flow ledger entries). The new computerized cash flow ledger entries database 38 (occasionally referred to herein as the “new computerized database”) is accessible by a client device 60 having an interface and a cloud server 70 to produce different cash accounting reports, including a statement of cash flows by the direct method. The server 10 can exchange data with other components using network interface 40 and I/O interface 50.

The hardware processor 20 can retrieve and transform data from general ledger entries 32, customer ledger entries 34, and vendor ledger entries 36 to create a new computerized cash flow ledger entries database 38 of cash flow ledger entries. The hardware processor 20 can identify documents or datasets from the general ledger entries 32, customer ledger entries 34, and vendor ledger entries 36 that have entries relating to cash accounts and generate new entries for the cash account entries to be added to the cash flow ledger entries database 38. The hardware processor 20 can compute and apply multiplication factors to the entries relating to cash accounts to modify the data prior to adding new entries (with the modified data) to the cash flow ledger entries database 38.

For simplicity only one application server 10 is shown but system 100 may include more application servers 10 operable by users to access remote network resources and exchange data. The application servers 10 may be the same or different types of devices. The application servers 10 has at least one processor 20, a data storage device 30 (including volatile memory or non-volatile memory or other data storage elements or a combination thereof), and at least one communication interface, such as network interface 40 and I/O interface 50. The application server 10 components may be connected in various ways including directly coupled, indirectly coupled via a network 80, and distributed over a wide geographic area and connected via a network 80.

In an embodiment, as depicted, application server 10 includes at least one processor 20, memory 30, at least one I/O interface 50, and at least one network interface 40.

Each processor 20 may be, for example, any type of general-purpose microprocessor or microcontroller, a digital signal processing (DSP) processor, an integrated circuit, a field programmable gate array (FPGA), a reconfigurable processor, a programmable read-only memory (PROM), or any combination thereof.

Memory 30 may include a suitable combination of any type of computer memory that is located either internally or externally such as, for example, random-access memory (RAM), read-only memory (ROM), compact disc read-only memory (CDROM), electro-optical memory, magneto-optical memory, erasable programmable read-only memory (EPROM), and electrically-erasable programmable read-only memory (EEPROM), Ferroelectric RAM (FRAM) or the like.

Each I/O interface 50 enables application server 10 (and its hardware processor 20) to interconnect with one or more input devices, such as a keyboard, mouse, camera, touch screen and a microphone, or with one or more output devices such as a display screen and a speaker.

Each network interface 40 enables application server 10 to communicate with other components, to exchange data with other components, to access and connect to network resources, to serve applications, and perform other computing applications by connecting to a network (or multiple networks) capable of carrying data including the Internet, Ethernet, plain old telephone service (POTS) line, public switch telephone network (PSTN), integrated services digital network (ISDN), digital subscriber line (DSL), coaxial cable, fiber optics, satellite, mobile, wireless (e.g. Wi-Fi, WiMAX), SS7 signaling network, fixed line, local area network, wide area network, and others, including any combination of these.

Application server 10 is operable to register and authenticate users (using a login, unique identifier, and password for example) prior to providing access to applications, a local network, network resources, other networks and network security devices. Application server 10 may serve one user or multiple users.

The system 100 reads databases (e.g. general ledger entries 32, customer ledger entries 34, and vendor ledger entries 36) to create a new computerized cash flow ledger entries database 38 containing only data relating to cash transactions (e.g. cash flow ledger entries). The new computerized database (e.g., cash flow ledger entries database 38) is accessible by a client device 60 having an interface and/or a cloud server 60 via a network 80. The system 100 generates different cash accounting reports using the new computerized database, including a statement of cash flows by the direct method.

The system 100 converts accrual basis accounts to cash basis accounts automatically and quickly. Further, if there is a change in the underlying accrual basis accounts, the system 100 immediately reflects the change in the cash basis accounts. As an example, if an accrual accounting entry is reversed, the system will automatically reverse the cash flow ledger entry which had been generated from it before. As another example, if a receipt/payment is ‘unapplied’ from an invoice, the cash flow ledger entry which had been generated for the ‘applied” receipt/payment will also be reversed. The system 100 integrates and synchronizes accrual and cash basis account data. The system 100 reduces errors and uses computing resources efficiently. A computer system and computer implemented process are essential to convert thousands or millions of accounting entries of an accounting system from an accrual basis accounts to cash basis accounts. These thousands or millions of entries may be referred to as a high volume, large volume, or substantial volume of accounting entries. An example advantage of embodiments described herein is that only the accrual basis accounts need to be to be stored in memory 30 and the cash basis accounts can be derived from the stored data on demand. This substantially reduces the amount of computer resources required to maintain the accounting system and eliminates errors between the two separate data stores of accounts.

The system 100 can derive a CFS statement by Direct Method from cash basis accounts. An overview is shown in FIG. 6 . The hardware processor 20 can transform data from accrual accounting to data for cash basis accounting and then to data for populating the cash flow ledger entries database 38.

The system 100 enables an automatic preparation of CFS by Direct Method. The system 100 can automatically prepare the CFS by Direct Method from cash basis of accounts. Accounting practitioners, researchers, and standard setters (FASB and IASB) have long sought a practical method to prepare a CFS by Direct Method.

A CFS by Direct Method is useful to investors, lenders, management, auditors and other stakeholders, since CFS by Direct Method is easier to understand as it provides detailed information of cash receipts and disbursements. The CFS by Direct Method provides information which makes it easier to predict/estimate future cash flows (especially in sensitivity analysis). The CFS by Direct Method is helpful in comparing actual cash flow to budget as both ex-post and ex-ante cash flow information is in the same format. The CFS by Direct Method makes it easier to compare cash flow information across different companies. This information is useful to managers, investors, creditors, and analysts. For example, the CFS by Direct Method provides more helpful data than the CFS by Indirect Method. Accounting systems may not collect information about gross operating cash receipts and payments. The system 100 implements a more comprehensive and useful approach by using the direct method in the statement of cash flows The system 100 uses the Direct Method which more clearly presents the actual cash receipts and payments during the period for operating activities as well as for Investing and financing activities. It also allows for presentation of actual cash flow using additional classifications such as, for example, tax and interest. The system 100 also allows for entirely new classifications which may be desired by management, investors, lenders or other stakeholders. If cash flow information is useful to investors when they are forecasting future cash flows, and the indirect method does not provide all the needed information or does not enable investors to generate it from the data or does not provide it an easily understandable format or contains errors, then the system 100 provides an advantage by using the direct method.

The method of preparing a CFS-Indirect Method requires that the income statement and the balance sheet be prepared first and the cash flow statement-indirect method is then derived from the income statement and balance sheet. System 100 prepares the CFS-Direct Method independently of the income statement and balance sheet. The CFS-Direct Method is thus ready before the income statement and the balance sheet and is independent of these two financial statements.

This has advantages, such as efficient use of computer resources, improved computation speed, and reduction in database errors. The early preparation of the CFS-Direct Method has great significance for managers, investors, lenders and the stock market as early cash flow information has significant economic value. Also, since the CFS-Direct Method is independent of the income statement and the balance sheet, any errors in these two documents are not passed on to the CFS-Direct Method. This reduction in errors is a significant economic advantage as it increases reliability of the CFS-Direct Method and reduces auditing costs.

Known accounting information systems are not designed to generate a direct method statement of cash flows. Further, known software packages do not even produce a correct statement of cash flows using the indirect method. Known approaches to preparing a correct statement of cash flows requires a nontrivial amount of manual intervention.

Accounting programs can have an Accrual Accounting Application Program (AAAP) installed in memory 30. The AAAP can receive transaction data as input and can generate various accounting reports derived from a database created by the input of transactions such as the income statement and the balances

The AAAP can manage data for a general ledger and various sub ledgers. The AAAP can have, apart from the general ledger, the cash or bank ledger, customers ledger, the vendors ledger, the fixed asset ledger and other ledgers. The entirety of this accounting system can be described as the accrual basis of accounts.

The system 100 transforms data related to accrual basis accounts into data related to cash basis accounts. The system 100 reduces work and errors in maintaining a dual set of accounts (accrual and cash basis). The system 100 enables the preparation of a CFS by Direct Method. The system 100 is innovative and transformative as it substantially enhances the power of computers to provide accounting information.

The system 100 can automatically convert accrual accounts to cash accounts using a software program (e.g. CAAP instructions 42) stored in memory 30 with instructions executable by the processor 20. The system 100 implements automatic conversion of accrual accounts to cash accounts by accessing data from the general ledger, the customer, and the vendor sub ledger. An overview the software program operations (e.g. CAAP instructions 42) is shown in FIG. 6 which can involve hardware processor 20 transforming data from accrual accounting to cash basis accounting and then populates the cash flow ledger entries database 38. The hardware processor 20 can use the cash flow ledger entries database 38 for the CFS by Direct Method.

Embodiments described herein provide a system 100 and method for the conversion of data from accrual basis accounts to data for cash basis accounts.

The system 100 uses input data from the accrual basis of accounts, and sample accrual accounting information is provided to show the conversion of accrual accounts to cash basis accounts:

Liquid Fund or Cash Accounts 2910 Cash 2920 Bank, LCY 2930 Bank Currencies 2940 Giro Account

The liquid fund or cash accounts shown here are only sample. The liquid fund or cash accounts may be added to by including, for example, bank overdraft accounts or intercompany accounts. Each addition or deletion to the liquid fund or cash accounts will lead the system 100 to create different cash flow ledger entries and hence a different CFS by Direct Method.

General Ledger Entries G/L Document Account Account Source Source Posting Date Entry No. Type No. Name Description Amount Type No. Reversed Jan. 1, 2020 54 Invoice 5110 Long-term Bank Mercedes 300 −50,000.00 Fixed FA000010 FALSE Loans Asset Jan. 1, 2020 55 Invoice 1320 Increases during the Mercedes 300 40,000.00 Fixed FA000010 FALSE Year Asset Jan. 1, 2020 56 Invoice 5630 Purchase VAT 25% Mercedes 300 10,000.00 Fixed FA000010 FALSE Asset Jan. 1, 2020 1 Payment 2920 Bank, LCY Contribution of cash 1,000,000.00 Bank NBL FALSE capital Account Jan. 1, 2020 2 Payment 3110 Capital Stock Contribution of cash −1,000,000.00 Bank NBL FALSE capital Account Jan. 2, 2020 3 Payment 8210 Office Supplies Lewis Home Furniture −20,000.00 Vendor 40000 TRUE Jan. 2, 2020 4 Payment 5630 Purchase VAT 25% Lewis Home Furniture −5,000.00 Vendor 40000 TRUE Jan. 2, 2020 5 Payment 5410 Vendors, Domestic Lewis Home Furniture 25,000.00 Vendor 40000 TRUE Jan. 2, 2020 6 Payment 5410 Vendors, Domestic Lewis Home Furniture −25,000.00 Vendor 40000 TRUE Jan. 2, 2020 7 Payment 5630 Purchase VAT 25% Lewis Home Furniture 5,000.00 Vendor 40000 TRUE Jan. 2, 2020 8 Payment 8210 Office Supplies Lewis Home Furniture 20,000.00 Vendor 40000 TRUE Jan. 2, 2020 9 Payment 2920 Bank, LCY Lewis Home Furniture −2,700.00 Bank NBL FALSE Account Jan. 2, 2020 10 Payment 5410 Vendors, Domestic Lewis Home Furniture 2,700.00 Vendor 40000 FALSE Jan. 4, 2020 30 Invoice 6710 Consulting Fees - Invoice 1018 −28,000.00 Customer 10000 FALSE Dom. Jan. 4, 2020 31 Invoice 5611 Sales VAT 10% Invoice 1018 −2,800.00 Customer 10000 FALSE Jan. 4, 2020 32 Invoice 2310 Customers Domestic Invoice 1018 30,800.00 Customer 10000 FALSE Jan. 15, 2020 42 2110 Resale Items Direct Cost 44127904 26,500.00 FALSE on Jan. 15, 2020 Jan. 15, 2020 43 7191 Direct Cost Applied, Direct Cost 44127904 −26,500.00 FALSE Retail on Jan. 15, 2020 Jan. 15, 2020 44 Invoice 7110 Purch., Retail - Dom. Invoice 1027 26,500.00 Vendor 44127904 FALSE Jan. 15, 2020 45 Invoice 5630 Purchase VAT 25% Invoice 1027 6,625.00 Vendor 44127904 FALSE Jan. 15, 2020 46 Invoice 5410 Vendors, Domestic Invoice 1027 −33,125.00 Vendor 44127904 FALSE Jan. 15, 2020 33 Payment 2920 Bank, LCY Customer 10 30,800.00 Bank NBL FALSE Account Jan. 15, 2020 34 Payment 2310 Customers Domestic Customer 10 −30,800.00 Customer 10000 FALSE Jan. 19, 2020 47 2110 Resale Items Direct Cost 44171511 −11,500.00 FALSE on Jan. 19, 2020 Jan. 19, 2020 48 7190 Cost of Retail Sold Direct Cost 44171511 11,500.00 FALSE on Jan. 19, 2020 Jan. 19, 2020 49 Invoice 6110 Sales, Retail - Dom. Invoice 1019 −14,936.20 Customer 44171511 FALSE Jan. 19, 2020 50 Invoice 5610 Sales VAT 25% Invoice 1019 −3,734.05 Customer 44171511 FALSE Jan. 19, 2020 51 Invoice 2310 Customers Domestic Invoice 1019 18,670.25 Customer 44171511 FALSE Jan. 22, 2020 35 Payment 2920 Bank, LCY Customer 20 50,000.00 Bank NBL FALSE Account Jan. 22, 2020 36 Payment 2310 Customers Domestic Customer 20 −50,000.00 Customer 20000 FALSE Jan. 23, 2020 37 Invoice 8130 Repairs and Invoice 1029 7,000.00 Vendor 62000 FALSE Maintenance Jan. 23, 2020 38 Invoice 5630 Purchase VAT 25% Invoice 1029 1,750.00 Vendor 62000 FALSE Jan. 23, 2020 39 Invoice 5410 Vendors, Domestic Invoice 1029 −8,750.00 Vendor 62000 FALSE Jan. 31, 2020 40 Payment 2920 Bank, LCY Vendor 62000 −8,750.00 Bank NBL FALSE Account Jan. 31, 2020 41 Payment 5410 Vendors, Domestic Vendor 62000 8,750.00 Vendor 62000 FALSE Feb. 12, 2020 52 Payment 2920 Bank, LCY Customer 44 18,670.25 Bank NBL FALSE Account Feb. 12, 2020 53 Payment 2310 Customers Domestic Customer 44 −18,670.25 Customer 44171511 FALSE Feb. 23, 2020 61 Payment 3120 Retained Earnings Drawing by Owner 57,000.00 Bank NBL FALSE Account Feb. 23, 2020 62 Payment 2920 Bank, LCY Drawing by Owner −57,000.00 Bank NBL FALSE Account Dec. 7, 2020 11 Invoice 7110 Purch., Retail - Dom. Order 106037 5,500.00 Vendor 10000 FALSE Dec. 7, 2020 12 Invoice 5630 Purchase VAT 25% Order 106037 1,375.00 Vendor 10000 FALSE Dec. 7, 2020 13 Invoice 5410 Vendors, Domestic Order 106037 −6,875.00 Vendor 10000 FALSE Dec. 7, 2020 26 2110 Resale Items Direct Cost 10000 5,500.00 FALSE on Dec. 7, 2020 Dec. 7, 2020 27 7191 Direct Cost Applied, Direct Cost 10000 −5,500.00 FALSE Retail on Dec. 7, 2020 Dec. 8, 2020 16 Invoice 1220 Increases during the Invoice 1025 35,000.00 Fixed FA000090 FALSE Year Asset Dec. 8, 2020 17 Invoice 5630 Purchase VAT 25% Invoice 1025 8,750.00 Fixed FA000090 FALSE Asset Dec. 8, 2020 18 Invoice 5410 Vendors, Domestic Invoice 1025 −43,750.00 Vendor 62000 FALSE Dec. 8, 2020 23 Invoice 7110 Purch., Retail - Dom. Invoice 1026 2,625.00 Vendor 30000 FALSE Dec. 8, 2020 24 Invoice 5630 Purchase VAT 25% Invoice 1026 656.25 Vendor 30000 FALSE Dec. 8, 2020 25 Invoice 5410 Vendors, Domestic Invoice 1026 −3,281.25 Vendor 30000 FALSE

Customer Ledger Entries Document Document Customer Original Remaining Posting Date Type No. No. Description Amount Amount Amount Jan. 4, 2020 Invoice 103040 10000 Invoice 1018 30,800.00 30,800.00 0.00 Jan. 15, 2020 Payment PP000003 10000 Customer 10 −30,800.00 −30,800.00 0.00 Jan. 19, 2020 Invoice 103041 44171511 Invoice 1019 18,670.25 18,670.25 0.00 Jan. 22, 2020 Payment PP000004 20000 Customer 20 −50,000.00 −50,000.00 −50,000.00 Feb. 12, 2020 Payment PP000006 44171511 Customer 44 −18,670.25 −18,670.25 0.00 Mar. 9, 2021 Invoice 103042 61000 Invoice 1020 54,700.00 54,700.00 0.00 Mar. 15, 2021 Invoice 103043 61000 Invoice 1021 5,625.00 5,625.00 3,000.00 Mar. 27, 2021 Payment PP000009 61000 Fairway Sound −70,000.00 −70,000.00 −12,675.00 On Entry Amount Remaining Posting Date Due Date Open Hold No. (LCY) Amt. (LCY) Jan. 4, 2020 Feb. 4, 2020 FALSE 32 30,800.00 0.00 Jan. 15, 2020 Jan. 15, 2020 FALSE 34 −30,800.00 0.00 Jan. 19, 2020 Feb. 2, 2020 FALSE 51 18,670.25 0.00 Jan. 22, 2020 Jan. 22, 2020 TRUE 36 −50,000.00 −50,000.00 Feb. 12, 2020 Feb. 12, 2020 FALSE 53 −18,670.25 0.00 Mar. 9, 2021 Apr. 9, 2021 FALSE 81 54,700.00 0.00 Mar. 15, 2021 Apr. 15, 2021 TRUE 84 5,625.00 3,000.00 Mar. 22, 2021 Mar. 27, 2021 TRUE 86 −70,000.00 −12,675.00

Vendor Ledger Entries Document Document External Document Vendor Posting Date Type No. Document No. Date No. Amount Description Jan. 2, 2020 Payment PAYMENT0002 Jan. 2, 2020 40000 25,000.00 Lewis Home Furniture Jan. 2, 2020 Payment PAYMENT0002 Jan. 2, 2020 40000 −25,000.00 Lewis Home Furniture Jan. 2, 2020 Payment PAYMENT0003 Jan. 2, 2020 40000 2,700.00 Lewis Home Furniture Jan. 15, 2020 Invoice 108065 WMS0001 Jan. 15, 2020 44127904 −33,125.00 Invoice 1027 Jan. 23, 2020 Invoice 108064 WH001 Jan. 23, 2020 62000 −8,750.00 Invoice 1029 Jan. 31, 2020 Payment PP000005 Jan. 31, 2020 62000 8,750.00 Vendor 62000 Dec. 7, 2020 Invoice 108061 LP0001 Jan. 5, 2020 10000 −6,875.00 Order 106037 Dec. 8, 2020 Invoice 108062 WH0001 Dec. 8, 2020 62000 −43,750.00 Invoice 1025 Dec. 8, 2020 Payment GJ0001 Dec. 8, 2020 62000 11,000.00 WalkerHolland Dec. 8, 2020 Payment PP000002 Dec. 8, 2020 62000 32,750.00 WalkerHolland Dec. 8, 2020 Invoice 108063 CT0001 Dec. 8, 2020 30000 −3,281.25 Invoice 1026 Dec. 9, 2020 Payment PP000001 Dec. 9, 2020 10000 1,520.00 London Postmaster Feb. 9, 2021 Invoice 108066 BTM0001 Feb. 9, 2021 44729910 −24,333.88 Invoice 1030 Feb. 15, 2021 Invoice 108067 BTM0002 Feb. 15, 2021 44729910 −12,100.00 Invoice 1031 Feb. 27, 2021 Payment PP000008 Feb. 27, 2021 44729910 19,000.00 Boybridge Tool Mart Closed Closed at Closed by Original Amount Remaining Posting Date by Entry No. Date Amount Amount (LCY) Amount Jan. 2, 2020 6 Jan. 2, 2020 25,000.00 25,000.00 25,000.00 0.00 Jan. 2, 2020 5 Jan. 2, 2020 0.00 −25,000.00 −25,000.00 0.00 Jan. 2, 2020 0 0.00 2,700.00 2,700.00 2,700.00 Jan. 15, 2020 0 0.00 −33,125.00 −33,125.00 −33,125.00 Jan. 23, 2020 41 Jan. 31, 2020 −8,750.00 −8,750.00 −8,750.00 0.00 Jan. 31, 2020 0 0.00 8,750.00 8,750.00 0.00 Dec. 7, 2020 0 0.00 −6,875.00 −6,875.00 −5,355.00 Dec. 8, 2020 22 Dec. 8, 2020 −32,750.00 −43,750.00 −43,750.00 0.00 Dec. 8, 2020 18 Dec. 8, 2020 11,000.00 11,000.00 11,000.00 0.00 Dec. 8, 2020 0 0.00 32,750.00 32,750.00 0.00 Dec. 8, 2020 0 0.00 −3,281.25 −3,281.25 −3,281.25 Dec. 9, 2020 13 Dec. 9, 2020 1,520.00 1,520.00 1,520.00 0.00 Feb. 9, 2021 0 0.00 −24,333.88 −24,333.88 −14,333.88 Feb. 15, 2021 0 0.00 −12,100.00 −12,100.00 −6,100.00 Feb. 27, 2021 0 0.00 19,000.00 19,000.00 3,000.00

The embodiments of the devices, systems and methods described herein may be implemented in a combination of both hardware and software. These embodiments may be implemented on programmable computers, each computer including at least one processor, a data storage system (including volatile memory or non-volatile memory or other data storage elements or a combination thereof), and at least one communication interface.

Program code is applied to input data to perform the functions described herein and to generate output information. The output information is applied to one or more output devices. In some embodiments, the communication interface may be a network communication interface. In embodiments in which elements may be combined, the communication interface may be a software communication interface, such as those for inter-process communication. In still other embodiments, there may be a combination of communication interfaces implemented as hardware, software, and combination thereof.

Throughout the discussion, numerous references will be made regarding servers, services, interfaces, portals, platforms, or other systems formed from computing devices. It should be appreciated that the use of such terms is deemed to represent one or more computing devices having at least one processor configured to execute software instructions stored on a computer readable tangible, non-transitory medium. For example, a server can include one or more computers operating as a web server, database server, or other type of computer server in a manner to fulfill described roles, responsibilities, or functions.

The embodiments described herein are implemented by physical computer hardware, including computing devices, servers, receivers, transmitters, processors, memory, displays, and networks. The embodiments described herein provide useful physical machines and particularly configured computer hardware arrangements. The embodiments described herein are directed to electronic machines and methods implemented by electronic machines adapted for processing and transforming electromagnetic signals which represent various types of information. The embodiments described herein pervasively and integrally relate to machines, and their uses; and the embodiments described herein have no meaning or practical applicability outside their use with computer hardware, machines, and various hardware components. Substituting the physical hardware particularly configured to implement various acts for non-physical hardware, using mental steps for example, may substantially affect the way the embodiments work. Such computer hardware limitations are clearly essential elements of the embodiments described herein, and they cannot be omitted or substituted for mental means without having a material effect on the operation and structure of the embodiments described herein. The computer hardware is essential to implement the various embodiments described herein and is not merely used to perform steps expeditiously and in an efficient manner.

FIG. 2 shows an example method 200 of an accounting application program for generating computerized databases. For example, the hardware processor 20 can automatically execute the CAAP instructions 42 (stored in memory 30) to generate or update the cash flow ledger entries database 38.

The method 200 involves electrical computers, digital processing, and visual display. The method 200 involves using the hardware processor 20 for generation and storage of a computerized cash flow ledger entries database 38. The method 200 further involves using the hardware processor 20 for retrieval and visualizations of data from the cash flow ledger entries database 38 to implement a CFS by Direct Method 206.

In some embodiments, the method 200 involves storing general ledger entries 32 in the memory 30, and using the hardware processor 20 to automatically extract cash related entries from the general ledger entries 32, modify the extracted cash related entries from the general ledger entries 32, create cash flow ledger entries from the modified cash related entries, and populate the cash flow ledger entries database 38 with the cash flow ledger entries. In some embodiments, the method 200 involves: storing customer ledger entries 34 and vendor ledger entries 36 in the memory 30, and using the hardware processor 20 to create additional cash flow ledger entries by extracting and modifying data from the customer ledger entries 34, the vendor ledger entries 36, and the general ledger entries 32, and using the hardware processor 20 to populate the cash flow ledger entries database 38 with the additional cash flow Ledger entries.

The method 200 involves modifying databases to create a new computerized cash flow ledger entries database 38 containing only data relating to cash transactions. The method involves using the new computerized cash flow ledger entries database 38 in response to commands from a client device 60 and a cloud server 70 to produce different cash accounting reports, including a CFS by the Direct Method 206.

In some embodiments, the method 200 involves using the system 100 to process data from the general ledger entries 32, customer ledger entries 34, and vendor ledger entries 36 using two stages:

Stage 1 (202): Separate cash entries and non-cash entries from the general ledger entries 32; and Stage 2 (204): Create additional cash entries from the customer ledger entries 34, vendor ledger entries 36, and the general ledger entries 32.

For Stage 1 (202), the system 100 automatically creates actual cash flow ledger entries (in the cash flow ledger entries database 38) from general ledger entries 32. In Stage 1 (202), general ledger entries 32 are separated by the hardware processor 32 into cash entries and non-cash entries. The cash entries are added by the hardware processor 32 to the cash flow ledger entries database 38 after modification. For example, the modification can be made by deleting the cash account and multiplying the remaining lines by −1 For Stage 1, the hardware processor 20 can automatically separate cash entries and non-cash entries from general ledger entries 32 to generate or update the cash flow ledger entries database 38.

FIG. 3 shows an example method of a sub-process (Stage 1 202) for generating computerized databases (e.g. the cash flow ledger entries database 38) by automatically separating cash and non-cash general ledger entries 32.

The sub-process starts at P100 to generate a computerized database by automatically separating cash and non-cash general ledger entries. At P150, the hardware processor 20 accesses the memory 30 storing general ledger entries 32 to automatically process and sort the general ledger entries 32 by date and document identification number. Each entry of the general ledger entries 32 has different data fields, such as a date, an amount, and an account number (which can indicate an account type). A document can have a collection of general ledger entries 32. The memory 30 stores a plurality of documents having general ledger entries 32. At P200, the hardware processor 20 determines whether there are additional documents (or data sets) of general ledger (G/L) entries 32 to automatically process and sort. If so, at P300, the hardware processor 20 reads the next unprocessed document number. At P325, the hardware processor 20 reads all general ledger entries 32 within the selected document number.

At P350, the hardware processor 20 determines whether any of the general ledger entries 32 have a data field indicating a cash account. If there are no general ledger entries 32 having a data field indicating a cash account (as identified in the above noted example table for Liquid Fund or Cash Accounts) in the document, then the hardware processor 20 returns to P200 to determine whether there are any additional documents (or data sets) of general ledger entries 32 to automatically process and sort. If there is an entry (or a plurality of entries) of the general ledger entries 32 having a data field indicating a cash account in the document, then the hardware processor 20 proceeds to P355 to determine if the entry is a transfer between two cash accounts. If the entry is a transfer between two cash accounts, then the hardware processor 20 returns to P200 to determine whether there are any additional documents (or data sets) of general ledger entries 32 to automatically process and sort. If the entry is not a transfer between two cash accounts, then the hardware processor 20 proceeds to P360 to copy the entry for the cash account (from the document or data set of the general ledger entries 32 currently being processed by the hardware processor 20). At P370, the hardware processor 20 multiplies the remaining entries (of the document or data set of the general ledger entries 32 currently being processed by the hardware processor 20) by multiplication factor of −1. The function of the operation is that each line created is added to the cash flow ledger entries database 38. At P380, the hardware processor 20 adds the new entry (with the cash account removed and the remaining lines multiplied by −1) to the cash flow ledger entries database 38. The remaining entries multiplied by the multiplication factor (−1) create new accounting entries which are added to the cash flow ledger entries database 38. After adding the entry to the cash flow ledger entries database 38, the hardware processor 20 returns to P200 to determine whether there are any additional documents (or data sets) of general ledger entries 32 to automatically process and sort.

If there are no more documents (or data sets) of general ledger entries 32 to automatically process and sort, then at P390 the hardware processor 20 registers the cash flow ledger entries database 38 which contains the entries, and ends the sub-process at P399. Accordingly, the sub-process results in the hardware processor 20 generating or updating the cash flow ledger entries database 38 which transformed data extracted from the general ledger entries 32. For this sub-process (Stage 1), the hardware processor 20 automatically separates cash entries and non-cash entries from general ledger entries 32 to generate or update the cash flow ledger entries database 38.

For Stage 2 (204), the system 100 creates additional entries after reclassifying general ledger entries 32. In Stage 2 (204), the cash entries created in Stage 1 (for the cash flow ledger entries database 38) may be modified if required. Modification is required if the receipt/payment is applied to an Invoice in either the accounts receivable (A/R) or accounts payable (A/P) module. Modification, if required, is by way of adding additional lines to show the exact nature of the receipt and payment.

The system 100 can add additional entries/lines by determining from the accounts receivable (A/R) and accounts payable (A/P) module, the invoice numbers and (Original) document numbers to which the receipt or payment has been applied.

The system 100 can add additional entries/lines by determining from the (Original) document numbers, the general ledger accounts which are impacted by the receipt or payment and the values thereof.

The system 100 can add additional entries (or lines) by splitting the receipt or payment value proportionately between the various general ledger accounts impacted by the receipt or payment. For example, the system 100 can split the receipt or payment proportionately. However, it is possible to use different logic. For example, the first allocation of payment may be to the VAT collected or paid and the excess amounts allocated proportionately to other accounts. In another embodiment, the first allocation of the payment may be to the payment for inventory and then the other accounts are allocated proportionately to other accounts. At present, there is no particular method of allocation of receipt/payment prescribed by GAAP. System 100 is flexible and can be programmed to allocate receipts/payments between Invoices and within an invoice on any basis desired or prescribed by GAAP or law.

The system 100 can add additional entries (or lines) by creating lines or entries to reflect this split. The system 100 can add additional entries (or lines) by adding the entries (or lines) created to the cash flow ledger entries database 38.

Any transfer between two liquid fund accounts has no impact on the cash flow ledger entries as both debits and credits cancel out.

FIG. 4 shows an example method of a sub-process (Stage 2 204) for generating computerized databases by automatically creating additional cash flow ledger entries.

At P3000, the hardware processor 20 starts the sub-process. At P4000, the hardware processor 20 determines if there are any unprocessed document numbers. If so, then at P5000 the hardware processor 20 reads a document number in a cash flow ledger entry (e.g. of the cash flow ledger entries database 38). At P5100, the hardware processor 20 determines if the document number has an A/R account or an A/P account. If not, then the hardware processor 20 returns the P4000 to determine if there are any additional unprocessed document numbers. If the hardware processor 20 determines that the document number has an A/R account or an A/P account, then at P6000 the hardware processor 20 determines whether the document source is a customer. If the hardware processor 20 determines that the document source is a customer, at P6100, the hardware processor 20 finds the document number in the customer ledger entries 34. If the hardware processor 20 determines that the document source is not a customer, at P6300, the hardware processor 20 finds the document number in the vendor ledger entries 36. At P6500, the hardware processor 20 determines whether the receipt or payment is applied to an invoice within the A/R module or the A/P module. If not, then the hardware processor 20 returns to P4000 to determine if there are any additional unprocessed document numbers. If the hardware processor 20 determines that the receipt or payment is applied to an invoice, then at P6600 the hardware processor 20 implements a calculation sub-process. At P7000, the hardware processor 20 registers the general ledger entry line created from the subprocess to the cash flow ledger entries database 38. At P8000, the hardware processor 20 ends the sub-process.

FIG. 5 shows another example method of a sub-process for generating computerized databases by automatically creating additional cash flow entries.

At P69050, the hardware processor 20 starts the sub-process. At P69100, the hardware processor 20 finds all document numbers to which receipt or payment is applied. At P69200, the hardware processor 20 determines if there are any additional unprocessed document numbers to which receipt or payment is applied. If so, at P69300, the hardware processor 20 reads the next unprocessed document number to which receipt or payment is applied. At P69400, the hardware processor 20 calculates a multiplication factor. The multiplication factor is used to determine that the applied amount is proportionately distributed between the various accounts/lines in the Invoice. For example, the multiplication factor can be the applied amount divided by the total A/R or AP amount. At P69500, the hardware processor 20 determines whether there are any unprocessed general ledger entry lines. If the hardware processor 20 determines that there are unprocessed lines of the general ledger entries 32, at P69600, the hardware processor 20 reads the next unprocessed line from the general ledger entries 32. At P69700, the hardware processor 20 determines whether the line entry has a source customer or vendor. If so, at P69800, the hardware processor 20 multiplies the line from the general ledger entries 32 by the multiplication factor. At P69000, the hardware processor 20 adds a new general ledger entry line to the cash flow ledger entries database 38. The hardware processor 20 returns to P69500 to determine whether there are any unprocessed general ledger entry lines. If so, the hardware processor 20 proceeds to P69600 and reads the next unprocessed line from the general ledger entries 32. If hardware processor 20 determines that there are no unprocessed general ledger entry lines, then the hardware processor 20 returns to P69200 to determine whether there are any additional unprocessed document numbers to which receipt or payment is applied. If so, then the hardware processor 20 proceeds to P69300. If not, then at P75000, the hardware processor 20 ends the sub-process.

The following table shows an overview of the conversion of all sample accrual general ledger entries to cash flow ledger entries. On the left hand side, all the accrual basis general ledger entries are shown, and on the right hand side cash basis general ledger entries for each of the general ledger entries are shown. cash flow entries created in Stage 1 and in Stage 2 are identified separately. Only general ledger entries which have a liquid funds account have a corresponding cash flow ledger entry. Entries which do not have a liquid fund account do not have a corresponding cash flow ledger entry.

The following tables (Case 1 to Case 11) show the detailed transformation by system 100 of each of the sample general ledger entries into cash flow ledger entries.

ORIGINAL GENERAL LEDGER ENTRY G/L Account Document No. Entry No. Posting Date No. Account Name Description Amount CASE NO FA0001 54 Jan. 1, 2020 5110 Long-term Bank Loans Mercedes 300 −50,000.00 < > FA0001 55 Jan. 1, 2020 1320 Increases during the Year Mercedes 300 40,000.00 FA0001 56 Jan. 1, 2020 5630 Purchase VAT 25% Mercedes 300 10,000.00 PAYMENT0001 1 Jan. 1, 2020 2920 Bank, LCY Contribution of 1,000,000.00 <Case 1> cash capital PAYMENT0001 2 Jan. 1, 2020 3110 Capital Stock Contribution of −1,000,000.00 Stage 1 cash capital PAYMENT0002 3 Jan. 2, 2020 8210 Office Supplies Lewis Home −20,000.00 < > Furniture PAYMENT0002 4 Jan. 2, 2020 5630 Purchase VAT 25% Lewis Home −5,000.00 Furniture PAYMENT0002 5 Jan. 2, 2020 5410 Vendors, Domestic Lewis Home 25,000.00 Furniture PAYMENT0002 6 Jan. 2, 2020 5410 Vendors, Domestic Lewis Home −25,000.00 Furniture PAYMENT0002 7 Jan. 2, 2020 5630 Purchase VAT 25% Lewis Home 5,000.00 Furniture PAYMENT0002 8 Jan. 2, 2020 8210 Office Supplies Lewis Home 20,000.00 Furniture PAYMENT0003 9 Jan. 2, 2020 2920 Bank, LCY Lewis Home −2,700.00 <Case 2> Furniture PAYMENT0003 10 Jan. 2, 2020 5410 Vendors, Domestic Lewis Home 2,700.00 Stage 1 Furniture 103040 30 Jan. 4, 2020 6710 Consulting Fees - Dom. Invoice 1018 −28,000.00 < > 103040 31 Jan. 4, 2020 5611 Sales VAT 10% Invoice 1018 −2,800.00 103040 32 Jan. 4, 2020 2310 Customers Domestic Invoice 1018 30,800.00 108065 42 Jan. 15, 2020 2110 Resale Items Direct Cost 26,500.00 < > 44127904 on Jan. 15, 2020 108065 43 Jan. 15, 2020 7191 Direct Cost Applied, Retail Direct Cost −26,500.00 44127904 on Jan. 15, 2020 108065 44 Jan. 15, 2020 7110 Purch., Retail - Dom. Invoice 1027 26,500.00 108065 45 Jan. 15, 2020 5630 Purchase VAT 25% Invoice 1027 6,625.00 108065 46 Jan. 15, 2020 5410 Vendors, Domestic Invoice 1027 −33,125.00 PP000003 33 Jan. 15, 2020 2920 Bank, LCY Customer 10 30,800.00 <Case 3> PP000003 34 Jan. 15, 2020 2310 Customers Domestic Customer 10 −30,800.00 Stage 1 Step 2 PP000004 35 Jan. 22, 2020 2920 Bank, LCY Customer 20 50,000.00 <Case 4> PP000004 36 Jan. 22, 2020 2310 Vendors, Domestic Customer 20 −50,000.00 Stage 1 103041 47 Jan. 19, 2020 2110 Resale Items Direct Cost −11,500.00 < > 44171511 on Jan. 19, 2020 103041 48 Jan. 19, 2020 7190 Cost of Retail Sold Direct Cost 11,500.00 44171511 on Jan. 19, 2020 103041 49 Jan. 19, 2020 6110 Sales, Retail - Dom. Invoice 1019 −14,936.20 103041 50 Jan. 19, 2020 5610 Sales VAT 25% Invoice 1019 −3,734.05 103041 51 Jan. 19, 2020 2310 Customers Domestic Invoice 1019 18,670.25 PP000005 40 Jan. 31, 2020 2920 Bank, LCY Vendor 62000 −8,750.00 <Case 5> PP000005 41 Jan. 31, 2020 5410 Vendors, Domestic Vendor 62000 8,750.00 Stage 1 Stage 2 PP000006 52 Feb. 12, 2020 2920 Bank, LCY Customer 44 18,670.25 <Case 6> PP000006 53 Feb. 12, 2020 2310 Customers Domestic Customer 44 −18,670.25 Stage 1 Stage 2 PP000007 62 Feb. 23, 2020 2920 Bank, LCY Drawing by −57,000.00 <Case 7> Owner PP000007 61 Feb. 23, 2020 3120 Retained Earnings Drawing by 57,000.00 Stage 1 Owner 108061 11 Dec. 7, 2020 7110 Purch., Retail - Dom. Order 106037 5,500.00 < > 108061 12 Dec. 7, 2020 5630 Purchase VAT 25% Order 106037 1,375.00 108061 13 Dec. 7, 2020 5410 Vendors, Domestic Order 106037 −6,875.00 108061 26 Dec. 7, 2020 2110 Resale Items Direct Cost 5,500.00 10000 on Dec. 7, 2020 108061 27 Dec. 7, 2020 7191 Direct Cost Applied, Retail Direct Cost −5,500.00 10000 on Dec. 7, 2020 Cash Cash Flow Entry Original Flow Account Account Amount Document No. Document No. No. Doc. No. Date Reclassify No. Name Description (LCY) FA0001 This Document is not converted by program to a Cash Flow Ledger Entry as Document does not have a Cash FA0001 Account. It may be used by program, if applicable, in other Cash Flow Ledger Entries. FA0001 PAYMENT0001 PAYMENT0001 PAYMENT0001 1 Jan. 1, FALSE 3110 Capital Contribution 1,000,000.00 2020 Stock of cash capital PAYMENT0002 This Document is not converted by program to a Cash Flow Ledger Entry as Document does not have a Cash PAYMENT0002 Account. It may be used by program, if applicable, in other Cash Flow Ledger Entries. PAYMENT0002 PAYMENT0002 PAYMENT0002 PAYMENT0002 PAYMENT0003 PAYMENT0003 PAYMENT0003 2 Jan. 2, FALSE 5410 Vendors, Lewis Home −2,700.00 2020 Domestic Furniture 103040 This Document is not converted by program to a Cash Flow Ledger Entry as Document does not have a Cash 103040 Account. It may be used by program, if applicable, in other Cash Flow Ledger Entries. 103040 108065 This Document is not converted by program to a Cash Flow Ledger Entry as Document does not have a Cash 108065 Account. It may be used by program, if applicable, in other Cash Flow Ledger Entries. 108065 108065 108065 PP000003 PP000003 PP000003 11 Jan. 15, TRUE 2310 Customers Customer 30,800.00 2020 Domestic 10 PP000003 12 103040 Jan. 15, TRUE 6710 Consulting Customer 28,000.00 2020 Fees - Dom. 10 PP000003 13 103040 Jan. 15, TRUE 5611 Sales VAT Customer 2,800.00 2020 10% 10 PP000003 14 Jan. 15, TRUE 2310 Customers Customer −30,800.00 2020 Domestic 10 PP000004 PP000004 PP000004 15 Jan. 22, FALSE 2310 Customers Customer 50,000.00 2020 Domestic 20 103041 This Document is not converted by program to a Cash Flow Ledger Entry as Document does not have a Cash 103041 Account. It may be used by program, if applicable, in other Cash Flow Ledger Entries. 103041 103041 103041 PP000005 PP000005 PP000005 16 Jan. 31, TRUE 5410 Vendors, Vendor −8,750.00 2020 Domestic 62000 PP000005 17 108064 Jan. 31, TRUE 8130 Repairs & Vendor −7,000.00 2020 Maintenance 62000 PP000005 18 108064 Jan. 31, TRUE 5630 Purchase VAT Vendor −1,750.00 2020 25% 62000 PP000005 19 Jan. 31, TRUE 5410 Vendors, Vendor 8,750.00 2020 Domestic 62000 PP000006 PP000006 PP000006 20 Feb. 12, TRUE 2310 Customers Customer 18,670.25 2020 Domestic 44 PP000006 21 103041 Feb. 12, TRUE 6110 Sales, Retail - Customer 14,936.20 2020 Dom. 44 PP000006 22 103041 Feb. 12, TRUE 5610 Sales VAT Customer 3,734.05 2020 25% 44 PP000006 23 Feb. 12, TRUE 2310 Customers Customer −18,670.25 2020 Domestic 44 PP000007 PP000007 PP000007 24 Feb. 23, FALSE 3120 Retained Drawing by −57,000.00 2020 Earnings Owner 108061 This Document is not converted by program to a Cash Flow Ledger Entry as Document does not have a Cash 108061 Account. It may be used by program, if applicable, in other Cash Flow Ledger Entries. 108061 108061 108061

CASE 1 Stage 1 Start: General Ledger Doc. No. PAYMENT0001 is identified for inclusion in Cash Basis Accounts by the program as it has a Liquid Fund A/c (G/L Account No. 2920) General Ledger Entry G/L Document Account Account Source Source Entry No. Document No. Posting Date Type No. Name Description Amount Type No. Reversed 1 PAYMENT0001 Jan. 1, 2020 Payment 2920 Bank, Contribution of 1,000,000.00 Bank NBL FALSE LCY cash capital Account 2 PAYMENT0001 Jan. 1, 2020 Payment 3110 Capital Contribution of −1,000,000.00 Bank NBL FALSE Stock cash capital Account Stage 1 Processing Steps: 1 Entry No. 1 is deleted 2 Entry No. 2 is multiplied by −1 & added to CF Ledger Entry as Entry No. 1 below Stage 1 Completion: Cash Flow Ledger Entry from General ledger Entry Cash Flow Ledger Entry Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 1 PAYMENT0001 Jan. 1, FALSE 3110 Capital Contribution of 1,000,000.00 Liquid NBL 2020 Stock cash capital Funds Stage 2 As Doc. No. PAYMENT0001 does not have an A/R or A/P Account, the program does not go to Stage 2

CASE 2 Stage 1 Start: General ledger Doc. No. PAYMENT0003 is identified for inclusion in Cash Basis Accounts by the program as it has a Liquid Fund A/c (G/L Account No. 2920) General Ledger Entry G/L Document Account Account Source Source Entry No. Document No. Posting Date Type No. Name Description Amount Type No. Reversed 9 PAYMENT0003 Jan. 2, 2020 Payment 2520 Bank, Lewis Home −2,700.00 Bank NBL FALSE LCY Furniture Account 10 PAYMENT0003 Jan. 2, 2020 Payment 5410 Vendors, Lewis Home 2,700.00 Vendor 40000 FALSE Domestic Furniture Stage 1 Processing Steps: 1 Entry No. 9 is deleted 2 Entry No. 10 is multiplied by −1 & added to CF Ledger Entry as Entry No. 2 below Stage 1 Completion: Cash Flow Ledger Entry from General ledger Entry Cash Flow Ledger Entry Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 2 PAYMENT0003 Jan. 2, FALSE 5410 Vendors, Lewis Home −2,700.00 Payables 40000 2020 Domestic Furniture Stage 2 Processing Steps: 3 Since Doc. No. PAYMENT0003 has a Vendor A/c, the program checks Vendor Ledger Entries. Since the Doc. No. PAYMENT0003 is not applied, the program does not proceed further. Applied Vendor Entries Document External Currency Closed by Entry No. Posting Date Type Document No. Description Document No. Code Original Amount Amount Amount No Application

CASE 3 Stage 1 Start: General Ledger No. No. PP000003 is identified for inclusion in Cash Basis Accounts by the program as it has a liquid Fund A/c (G/L Account No. 2920) General Ledger Entry G/L Document Account Account Source Source Entry No. Document No. Posting Date Type No. Name Description Amount Type No. Reversed 33 PP000003 Jan. 15, 2020 Payment 2920 Bank, Customer 10 30,800.00 Bank NBL FALSE LCY Account 34 PP900003 Jan. 15, 2020 Payment 2310 Customers Customer 10 −30,800.00 Customer 10090 FALSE Domestic Stage 1 Processing Steps: 1 Entry No. 33 is deleted 2 Entry No. 34 is multiplied by −1 & added to CF Ledger Entry as Entry No. 11 below Stage 1 Completion: Cash Flow Ledger Entry from General Ledger Entry Cash Flow Ledger Entry Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 11 PP000003 Jan. 15, TRUE 2310 Customers Customer 10 30,800.90 Receivables 10000 2020 Domestic Stage 2 Processing Steps: 1 Since Doc. No. PP000003 has a Vendor A/c, the program checks Vender Ledger Entries to see if it is applied. The program finds that the Doc. No. PP000003 is applied to Doc. No. 103040 Applied Customer Entries Document Closed by Entry No. Posting Date Type Document No. Description Original Amount Amount Amount 32 Jan. 4, 2020 Invoice 103040 Invoice 1018 30,800.00 30,800.00 30,800.00 Processing Steps: 1 Calculated Multiplication Factor (MF) = Applied Amount/Total AR for Doc. No. 103040 2 Create Additional Cash Flow Ledger Entries by multiplying all Entries in Original Doc. No. 103040 by MF Stage 2- Calculate Multiplication Factor from ‘Original’ General Ledger Entry G/L Document Account Entry No. Document No. Posting Date Type No. Account Name Description 30 103040 Jan. 4, 2020 Invoice 6710 Consulting Fees - Dom. Invoice 1013 31 103040 Jan. 4, 2020 Invoice 5611 Sales VAT 10% Invoice 1013 32 103040 Jan. 4, 2020 Invoice 2310 Customers Domestic Invoice 1013 Stage 2- Calculate Multiplication Factor from ‘Original’ General Ledger Entry Source Source Multiplication CF Entry Amount Entry No. Amount Type No. Reversed Factor (MF) (Amount × MF) 30 −28,000.00 Customer 10000 FALSE −1 28,000.00 31 −2,800.00 Customer 10000 FALSE −1 2,800.00 32 30,800.00 Customer 10000 FALSE −1 (30,800.00) Stage 2 Completion-Subprocess Creates Additional Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 12 PP000003 103040 Jan. 15, TRUE 6710 Consulting Customer 10 28,000.00 Receivables 10000 2020 Fees - Dom. 13 PP000003 103040 Jan. 15, TRUE 5611 Sales VAT Customer 10 2,800.00 Receivables 10000 2020 10% 14 PP000003 Jan. 15, TRUE 2310 Customers Customer 10 −30,800.00 Receivables 10000 2020 Domestic Complete Reclassified Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 11 PP000003 Jan. 15, TRUE 2310 Customers Customer 10 30,800.00 Receivables 10000 2020 Domestic 12 PP000003 103040 Jan. 15, TRUE 6710 Consulting Customer 10 28,000.00 Receivables 10000 2020 Fees - Dom. 13 PP000003 103040 Jan. 15, TRUE 5611 Sales VAT Customer 10 2,800.00 Receivables 10000 2020 10% 14 PP000003 Jan. 15, TRUE 2310 Customers Customer 10 −30,800.00 Receivables 10000 2020 Domestic Explanatory Notes: 1 The Cash Flow A/c No. is the same as General Ledger A/c No for all Entries 2 The Cash Flow Date is the Cash Flow Date for PP000003 3 The Original Doc. No. (from which CF Ledger Entry is derived) is also shown

CASE 4 Stage 1 Start: General Ledger Doc. No. PP000004 is identified for inclusion in Cash Basis Accounts by the program as it has a Liquid Fund A/c (G/L Account No. 2920) General Ledger Entry G/L Document Account Account Source Source Entry No. Document No. Posting Date Type No. Name Description Amount Type No. Reversed 35 PP000004 Jan. 22, 2020 Payment 2920 Bank, Customer 20 50,000.00 Bank NBL FALSE LCY Account 36 PP000004 Jan. 22, 2020 Payment 2310 Customers Customer 20 −50,000.00 Customer 20000 FALSE Domestic Stage 1 Processing Steps: 1 Entry No. 35 is deleted 2 Entry No. 36 is multiplied by −1 & added to CF Ledger Entry as Entry No. 15 below Stage 1 Completion: Cash Flow Ledger Entry from General ledger Entry Cash Flow Ledger Entry Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 15 PP000004 Jan. 22, FALSE 2310 Customers Customer 20 50,000.00 Receivables 20000 2020 Domestic Stage 2 Processing Steps: 1 Since Doc. No. PP000004 has a Customer A/c, the program checks Customer Ledger Entries to see if this Receipt is applied. Since it is not applied the program does not proceed further.

CASE 5 Stage 1 Start: General Ledger Doc. No. PP000005 is identified for inclusion in Cash Basis Accounts by the program as it has a Liquid Fund A/c (G/L Account No. 2920) General Ledger Entry G/L Document Account Account Source Source Entry No. Document No. Posting Date Type No. Name Description Amount Type No. Reversed 40 PP000005 Jan. 31, 2020 Payment 2920 Bank, Vendor 65000 −8,750.00 Bank NBL FALSE LCY Account 41 PP000005 Jan. 31, 2020 Payment 5410 Vendors, Vendor 65000 8,750.00 Vendor 62000 FALSE Domestic Stage 1 Processing Steps: 1 Entry No. 40 is deleted 2 Entry No. 41 is multiplied by −1 & added to CF Ledger Entry as Entry No. 16 below Stage 1 Completion: Cash Flow Ledger Entry from General ledger Entry Cash Flow Ledger Entry Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 16 PP000005 Jan. 31, TRUE 5410 Vendors, Vendor 62000 −8,750.00 Payables 62000 2020 Domestic Stage 2 Processing Steps: 1 Since Doc. No. PP000005 has a Customer A/c, the program checks Customer Ledger Entries to see if it is applied. The program finds that the Doc. No. PP000005 is applied to Doc No. 108064 Applied Customer Entries Document Document Closed by Entry No. Posting Date Type No. Description Original Amount Amount Amount 39 Jan. 20, 2020 Invoice 108064 Invoice 1029 −8,750.00 −8,750.00 −8,750.00 Processing Steps: 1 Calculate Multiplication Factor (MF) = Applied Amount/Total AP for Doc. No. 108062 2 Create Additional Cash Flow Ledger Entries by multiplying all Entries in Original Doc. No. 108064 by MF Stage 2-Calculate Multiplication Factor from ‘Original’ General Ledger Entry G/L Document Account Entry No. Document No. Posting Date Type No. Account Name Description 37 108064 Jan. 23, 2020 Invoice 8130 Repairs and Maintenance Invoice 1029 38 108064 Jan. 23, 2020 Invoice 5630 Purchase VAT 25% Invoice 1029 39 108064 Jan. 23, 2020 Invoice 5410 Vendors, Domestic Invoice 1029 Stage 2-Calculate Multiplication Factor from ‘Original’ General Ledger Entry Source Source Multiplication CF Entry Amount Entry No. Amount Type No. Reversed Factor (MF) (Amount × MF) 37 7,000.00 Vendor 6200 FALSE −1 −7000 38 1,750.00 Vendor 6200 FALSE −1 −1750 39 −8,750.00 Vendor 6200 FALSE −1 8750 Stage 2 Completion-Subprocess Creates Additional Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 17 PP000005 108064 Jan. 31, TRUE 8130 Repairs and Vendor 62000 −7,000.00 Payables 62000 2020 Maintenance 18 PP000005 108064 Jan. 31, TRUE 5630 Purchase VAT Vendor 62000 −1,750.00 Payables 62000 2020 25% 19 PP000005 Jan. 31, TRUE 5410 Vendors, Vendor 62000 8,750.00 Payables 62000 2020 Domestic Complete Reclassified Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 16 PP000005 Jan. 31, TRUE 5410 Vendors, Vendor 62000 −8,750.00 Payables 62000 2020 Domestic 17 PP000005 108064 Jan. 31, TRUE 8130 Repairs and Vendor 62000 −7,000.00 Payables 62000 2020 Maintenance 18 PP000005 108064 Jan. 31, TRUE 5630 Purchase VAT Vendor 62000 −1,750.00 Payables 62000 2020 25% 19 PP000005 Jan. 31, TRUE 5410 Vendors, Vendor 62000 8,750.00 Payables 62000 2020 Domestic Explanatory Notes: 1 The Cash Flow A/c No. is the same as General Ledger A/c No for all Entries 2 The Cash Flow Date is the Cash Flow Date for PP000005 3 The Original Doc. No. (from which CF Ledger Entry is derived) is also shown

CASE 6 Stage 1 Start: General Ledger Doc. No. PP000006 is identified for inclusion in Cash Basis Accounts by the program as it has a Liquid Fund A/c (G/L Account No. 2920) General Ledger Entry G/L Document Account Account Entry No. Document No. Posting Date Type No. Name Description 52 PP000006 Feb. 12, 2020 Payment 2920 Bank, Customer 44 LCY 53 PP000006 Feb. 12, 2020 Payment 2310 Customers Customer 44 Dome General Ledger Entry Source Source Multiplication Cash Flow Entry No. Amount Type No. Reversed Factor (MF) Amount 52 18,670.25 Bank NBL FALSE Account 53 −18,670.25 Customer 44171511 FALSE −1 18,670.25 Stage 1 Processing Steps: 1 Entry No. 52 is deleted 2 Entry No. 53 is multiplied by −1 & added to CF Ledger Entry as Entry No. 20 below Stage 1 Completion: Cash Flow Ledger Entry from General ledger Entry Cash Flow Ledger Entry Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 20 PP000006 Feb. 12, TRUE 2310 Customers Customer 44 18,670.25 Receivables 44171511 2020 Domestic Stage 2 Processing Steps: 1 Since Doc. No. PP000006 has a Customer A/c, the program checks Customer Ledger Entries to see if it is applied. The program finds that the Doc. No. PP000005 is applied to Doc. No. 103041 Applied Customer Entries Entry No. Posting Date Document Type Document N Description Original Amount 51 Jan. 19, 2020 Invoice 103041 Invoice 1019 18,670.25 Processing Steps: 2 Calculate Multiplication Factor (MF) = Applied Amount/Total AP for Doc. No. 103041 3 Create Additional Cash Flow Ledger Entries by multiplying all Entries in Original Doc. No. 103041 by MF Stage 2-Calculate Multiplication Factor from ‘Original’ General Ledger Entry G/L Document Account Entry No. Document No. Posting Date Type No. Account Name Description 47 103041 Jan. 19, 2020 2110 Resale Items Direct Cost 44171511 48 103041 Jan. 19, 2020 7190 Cost of Retail Sol Direct Cost 44171511 49 103041 Jan. 19, 2020 Invoice 6110 Sales, Retail - Do Invoice 1019 50 103041 Jan. 19, 2020 Invoice 5610 Sales VAT 25% Invoice 1019 51 103041 Jan. 19, 2020 Invoice 2310 Customers Dome Invoice 1019 Stage 2-Calculate Multiplication Factor from ‘Original’ General Ledger Entry Source Source Multiplication CF Entry Amount Entry No. Amount Type No. Reversed Factor (MF) (Amount × MF) 47 −11,500.00 FALSE 48 11,500.00 FALSE 49 −14,936.20 Customer 44171511 FALSE −1 14,936.20 50 −3,734.05 Customer 44171511 FALSE −1 3,734.05 51 18,670.25 Customer 44171511 FALSE −1 (18,670.25) Stage 2 Completion-Subprocess Creates Additional Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 21 PP000006 103041 Feb. 12, TRUE 6110 Sales, Retail - Customer 44 14,936.20 Receivables 44171511 2020 Dom. 22 PP000006 103041 Feb. 12, TRUE 5610 Sales VAT Customer 44 3,734.05 Receivables 44171511 2020 25% 23 PP000006 Feb. 12, TRUE 2310 Customers Customer 44 −18,670.25 Receivables 44171511 2020 Domestic Complete Reclassified Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 20 PP000006 Feb. 12, TRUE 2310 Customers Customer 44 18,670.25 Receivables 44171511 2020 Domestic 21 PP000006 103041 Feb. 12, TRUE 6110 Sales, Retail - Customer 44 14,936.20 Receivables 44171511 2020 Dom. 22 PP000006 103041 Feb. 12, TRUE 5610 Sales VAT Customer 44 3,734.05 Receivables 44171511 2020 25% 23 PP000006 Feb. 12, TRUE 2310 Customers Customer 44 −18,670.25 Receivables 44171511 2020 Domestic Explanatory Notes: 1 The Cash Flow A/c No. is the same as General Ledger A/c No for all Entires 2 The Cash Flow Date is the Cash Flow Date for PP000006 3 The Original Doc. No. (from which CF Ledger Entry is derived) is also shown

CASE 7 Stage 1 Start: General Ledger Doc. No. PP000007 is identified for inclusion in Cash Basis Accounts by the program as it has a Liquid Fund A/c (G/L Account No. 2920) General Ledger Entry Document G/L Account Source Source Entry No. Document No. Posting Date Type Accou Name Description Amount Type No. Reversed 62 PP000007 Feb. 23, 2020 Payment 2920 Bank, Drawing by −57,000.00 Bank NBL FALSE LCY Owner Account 62 PP000007 Feb. 23, 2020 Payment 3120 Retained Drawing by 57,000.00 Bank NBL FALSE Earnings Owner Account Stage 1 Processing Steps: 1 Entry No. 62 is deleted 2 Entry No. 62 is multiplied by −1 & added to CF Ledger Entry as Entry No. 20 below Step 1-Cash Flow Ledger Entry Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. PP000007 Feb. 23, FALSE 3120 Retained Drawing by −57,000.00 Liquid NBL 24 2020 Earnings Owner Funds Stage 2: As Doc. No. PP000007 does not have an A/R or A/P Account, the program does not go to Stage 2

CASE 8 Stage 1 Start: General Ledger Doc. No. PP000002 is identified for inclusion in Cash Basis Accounts by the program as it has a Liquid Fund A/c General Ledger Entry G/L Document Account Account Source Source Entry No. Document No. Posting Date Type No. Name Description Amount Type No. Reversed 21 PP000002 Dec. 8, 2020 Payment 2920 Bank, WalkerHolland (32,750.00) Bank NBL FALSE LCY Account 22 PP000002 Dec. 8, 2020 Payment 5410 Vendors, WalkerHolland 32,750.00 Vendor 62000 FALSE Domestic Stage 1 Processing Steps: 1. Entry No. 21 is deleted 2. Entry No. 22 is multiplied by −1 & added to CF Ledger Entry as Entry No. 7 below Stage 1 Completion: Cash Flow Ledger Entry from Payment General ledger Entry Cash Flow Ledger Entry Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 7 PP000002 Dec. 8, TRUE 3410 Vendors, WalkerHolland (32,750.00) Payables 62000 2020 Domestic Stage 2 Processing Steps: 3. Since Doc. No. PP000002 has a Vendor A/c, the program checks Vendor Ledger Entries and finds payment is applied to Doc. No. 108062 Applied Vendor Ledger Entries Document Document Entry No. Posting Date Type No. Description Original Amount Amount 18 Dec. 8, 2020 Invoice 108062 Invoice 1025 (43,750.00) (43,750.00) Processing Steps: 1. Calculate Multiplication Factor (MF) = Applied Amount/Total AP for Doc. No. 108062 2. Create Additional Cash Flow Ledger Entries by multiplying all Entries in Original Doc. No. 108062 by MF Stage 2- Calculate Multiplication Factor from ‘Original’ General Ledger Entry G/L Document Account Entry No. Document No. Posting Date Type No. Account Name Description 16 108062 Dec. 8, 2020 Invoice 1220 Increases during the Year Invoice 1025 17 108062 Dec. 8, 2020 Invoice 5630 Purchase VAT 25% Invoice 1025 18 108062 Dec. 8, 2020 Invoice 5410 Vendors, Domestic Invoice 1025 Stage 2- Calculate Multiplication Factor from ‘Original’ General Ledger Entry Source Source Multiplication CF Entry Amount Entry No. Amount Type No. Reversed Factor (MF) (Amount × MF) 16 35,000.00 Fixed FA000090 FALSE −0.748571429 −26,200.00 Asset 17 8,750.00 Fixed FA000090 FALSE −0.748571429 −6,550.00 Asset 18 (43,750.00) Vendor 62000 FALSE −0.748571429 32,750.00 Stage 2 Completion-Subprocess Creates Additional Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 8 PP000002 108062 Dec. 8, TRUE 1220 Increases during WalkerHolland (26,200.00) Payables 62000 2020 the Year 9 PP000002 108062 Dec. 8, TRUE 5630 Purchase VAT WalkerHolland (6,550.00) Payables 62000 2020 25% 10 PP000002 Dec. 8, TRUE 5410 Vendors, WalkerHolland 32,750.00 Payables 62000 2020 Domestic Complete Reclassified Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 7 PP000002 Dec. 8, TRUE 5410 Vendors, WalkerHolland −32,750.00 Payables 62000 2020 Domestic 8 PP000002 108062 Dec. 8, TRUE 1220 Increases during WalkerHolland −26,200.00 Payables 62000 2020 the Year 9 PP000002 108062 Dec. 8, TRUE 5630 Purchase VAT WalkerHolland −6,550.00 Payables 62000 2020 25% 10 PP000002 Dec. 8, TRUE 5410 Vendors, WalkerHolland 32,750.00 Payables 62000 2020 Domestic Explanatory Notes: The Cash Flow A/c No. is the same as General Ledger A/c No. The Cash Flow Date is the Cash Flow Date for PP000002 The Original Doc. No. (from which CF Ledger Entry is derived) is also

CASE 9 G/L Document Account Account Source Source Entry No. Document No. Posting Date Type No. Name Description Amount Type No. Reversed 14 PP000001 Dec. 9, 2020 Payment 1920 Bank, London −1,520.00 Bank NBL FALSE LCY Postmaster Account 15 PP000001 Dec. 9, 2020 Payment 5410 Vendors, London 1,520.00 Vendor 10000 FALSE Domestic Postmaster Stage 1 Processing Steps: 1 Entry No. 14 is deleted 2 Entry No. 15 is multiplied by −1 & added to CF Ledger Entry as Entry No. 3 below Cash Flow Ledger Entry Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 3 PP000001 Dec. 9, TRUE 5410 Vendors, London −1,520.00 Payables 10000 2020 Domestic Postmaster Stage 2 Processing Steps: 3 Since Doc. No. PP000001 has a Vendor A/c, the program checks Vendor Ledger Entries to see if it is applied. The program finds the the Doc. No. PP000001 is applied to Doc. No. 108061 Applied Vendor Ledger Entries Document Document Entry No. Posting Date Type No. Description Original Amount Amount 13 Dec. 7, 2020 Invoice 108061 Order 106037 −6,1175.00 −6,1175.00 Processing Steps: 1 Calculate Multiplication Factor (MF) = Applied Amount/Total AP for Doc. No. 108061 2 Create Additional Cash Flow Ledger Entries by multiplying all Entries in Original Doc. No. 108061 by MF 3 Entries which do not have Source Type are not processed (Entry No. 26 & 27) Stage 2- Calculate Multiplication Factor from ‘Original’ General Ledger Entry G/L Document Account Entry No. Document No. Posting Date Type No. Account Name Description 26 108061 Dec. 7, 2020 2110 Resale Items Direct Cost 10000 on Dec. 7, 2020 27 108061 Dec. 7, 2020 7191 Direct Cost Applied, Direct Cost 10000 on Dec. 7, 2020 11 108061 Dec. 7, 2020 Invoice 7110 Purch, Retail - Dom. Order 106037 12 108061 Dec. 7, 2020 Invoice 5830 Purchase VAT 25% Order 106037 13 108061 Dec. 7, 2020 Invoice 5410 Vendors, Domestic Order 106037 Stage 2- Calculate Multiplication Factor from ‘Original’ General Ledger Entry Source Source Multiplication CF Entry Amount Entry No. Amount Type No. Reversed Factor (MF) (Amount × MF) 26 5,500.00 FALSE 27 −5,500.00 FALSE 11 5,500.00 Vendor 10000 FALSE −0.221090909 (1,216.00) 12 1,375.00 Vendor 10000 FALSE −0.221090909 (304.00) 13 −6,875.00 Vendor 10000 FALSE −0.221090909 1,520.00 Stage 2 Completion-Subprocess Creates Additional Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 4 PP000001 108061 Dec. 9, TRUE 7110 Purch, Retail - London −1,216.00 Payables 10000 2020 Dom. Postmaster 5 PP000001 108061 Dec. 9, TRUE 5830 Purchase VAT London −304.00 Payables 10000 2020 25% Postmaster 6 PP000001 Dec. 9, TRUE 5410 Vendors, London 1,520.00 Payables 10000 2020 Domestic Postmaster Complete Reclassified Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 3 PP000001 Dec. 9, TRUE 5410 Vendors, London −1,520.00 Payables 10000 2020 Domestic Postmaster 4 PP000001 108061 Dec. 9, TRUE 7110 Purch, Retail - London −1,216.00 Payables 10000 2020 Dom. Postmaster 5 PP000001 108061 Dec. 9, TRUE 5830 Purchase VAT London −304.00 Payables 10000 2020 25% Postmaster 6 PP000001 Dec. 9, TRUE 5410 Vendors, London 1,520.00 Payables 10000 2020 Domestic Postmaster Explanatory Notes: 1 The Cash Flow A/c No. is the same as General Ledger A/c No for all Entries 2 The Cash Flow Date is the Cash Flow Date for PP000001 3 The Original Doc. No. (from which CF Ledger Entry is derived) is also shown

CASE 10 Stage 1 Start: General Ledger Doc. No. PP000008 is identified for inclusion in Cash Basis Accounts by the program as it has a Liquid Fund A/c General Ledger Entry G/L Account Source Source Entry No. Document No. Posting Date Document Account Name Description Amount Type No. Reversed 73 PP000008 Feb. 27, 2021 Payment 2920 Bank, Boybridge −19,000.00 Bank NBL FALSE LCY Tool Mart Account 74 PP000008 Feb. 27, 2021 Payment 5410 Vendors, Boybridge 19,000.00 Vendor 44729910 FALSE Domestic Tool Mart Stage 1 Processing Steps: 1 Entry No. 73 2 Entry No. 74 is multiplied by I & added to CP Lodger Entry as Entry No. 25 below Stage 1 Completion: Cash Flow Ledger Entry from General ledger Entry Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 25 PP000008 Feb. 27, TRUE 5410 Vendors, Boybridge −19,000.00 Payables 44729910 2021 Domestic Tool Mart Stage 2 Processing Steps: 3 Since Doc. No. PP000008 has a Vendor A/c, the program checks Vendor Ledger Entries to see if it is applied. The program finds that the Doc. No. PP000008 is applied to Doc. No. 108066 Applied Ledger Entries Entry No. Posting Date Document T Document Description Original Amount 69 Feb. 9, 2021 Invoice 108066 Invoice 1030 −24,333.88 72 Feb. 15, 2021 Invoice 108067 Invoice 1031 −12,100.00 Processing Steps: 1 Calculated Multiplication Lector (MF) = Applied Amount/Total AP tor Doc. No. 108066 and separately for Doc. No. 108067 2 Create Additional Cash Flow Ledger Entries by multiplying all Entries in Original Doc. No. 108066 & 108067 by respective MF Stage 2- Calculate Multiplication Factor from ‘Original’ General Ledger Entry G/L Document Account Entry No. Document No. Posting Date Type No. Account Name Description 63 108066 Feb. 9, 2021 2120 Finished Goods Direct Cost 44729910 on Mar. 9, 2021 64 108066 Feb. 9, 2021 7181 Direct Cost Applied, Direct Cost 44729910 Retail on Mar. 9, 2021 65 108066 Feb. 9, 2021 Invoice 7110 Purch., Retail - Dom. Invoice 1030 66 108066 Feb. 9, 2021 Invoice 5630 Purchase VAT 25% Invoice 1030 67 108066 Feb. 9, 2021 Invoice 8130 Repairs and Maintenance Invoice 1030 68 108066 Feb. 9, 2021 Invoice 5630 Purchase VAT 25% Invoice 1030 69 108066 Feb. 9, 2021 Invoice 5410 Vendors, Domestic Invoice 1030 70 108067 Feb. 15, 2021 Invoice 6710 Consulting Fees - Dom. Invoice 1031 71 108067 Feb. 15, 2021 Invoice 5631 Purchase VAT 10% Invoice 1031 72 108067 Feb. 15, 2021 Invoice 5410 Vendors, Domestic Invoice 1031 Stage 2- Calculate Multiplication Factor from ‘Original’ General Ledger Entry Source Source Multiplication Amount of CF Entry Entry No. Amount Type No. Reversed Factor (MF) (Amount × MF) 63 12,967.10 FALSE 64 −12,967.10 FALSE 65 12,967.10 Vendor 44729910 FALSE 0.4109497 5,328.83 66 3,241.75 Vendor 44729910 FALSE 0.4109497 1,332.21 67 8,500.00 Vendor 44729910 FALSE 0.4109497 2,671.17 68 1,625.00 Vendor 44729910 FALSE 0.4109497 667.79 69 −24,333.88 Vendor 44729910 FALSE 0.4109497 (10,000.00) 70 11,000.00 Vendor 44729910 FALSE 0.495867769 5,454.55 71 1,100.00 Vendor 44729910 FALSE 0.495867769 545.45 72 −12,100.00 Vendor 44729910 FALSE 0.495867769 (6,000.00) Stage 2 Completion-Subprocess Creates Additional Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 25 PP000008 Mar. 27, TRUE 5410 Vendors, Boybridge −19,000.0 Payables 44729910 2021 Domestic Tool Mart 26 PP000008 108066 Mar. 27, TRUE 7110 Purch., Retail - Boybridge −5,328.83 Payables 44729910 2021 Dom. Tool Mart 27 PP000008 108066 Mar. 27, TRUE 5630 Purchase VAT Boybridge −1,332.23 Payables 44729910 2021 25% Tool Mart 28 PP000008 108066 Mar. 27, TRUE 8130 Repairs and Boybridge −2,671.17 Payables 44729910 2021 Maintenance Tool Mart 29 PP000008 108066 Mar. 27, TRUE 5630 Purchase VAT Boybridge −667.79 Payables 44729910 2021 25% Tool Mart 30 PP000008 Mar. 27, TRUE 6710 Consulting Boybridge −5,454.55 Payables 44729910 2021 Fees - Dom. Tool Mart 31 PP000008 108067 Mar. 27, TRUE 5631 Purchase VAT Boybridge −545.45 Payables 44729910 2021 10% Tool Mart 32 PP000008 Mar. 27, TRUE 5410 Vendors, Boybridge 16,000.00 Payables 44729910 2021 Domestic Tool Mart Complete Reclassified Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 25 PP000008 Mar. 27, TRUE 5410 Vendors, Boybridge −19,000.0 Payables 44729910 2021 Domestic Tool Mart 26 PP000008 108066 Mar. 27, TRUE 7210 Purch., Retail - Boybridge −5,328.83 Payables 44729910 2021 Dom. Tool Mart 27 PP000008 108066 Mar. 27, TRUE 5630 Purchase VAT Boybridge −1,332.23 Payables 44729910 2021 25% Tool Mart 28 PP000008 108066 Mar. 27, TRUE 8130 Repairs and Boybridge −2,671.17 Payables 44729910 2021 Maintenance Tool Mart 29 PP000008 108066 Mar. 27, TRUE 5630 Purchase VAT Boybridge −667.79 Payables 44729910 2021 25% Tool Mart 30 PP000008 108067 Mar. 27, TRUE 6710 Consulting Boybridge −5,454.55 Payables 44729910 2021 Fees - Dom. Tool Mart 31 PP000008 108067 Mar. 27, TRUE 5631 Purchase VAT Boybridge −545.45 Payables 44729910 2021 10% Tool Mart 32 PP000008 Mar. 27, TRUE 5410 Vendors, Boybridge 16,000.00 Payables 44729910 2021 Domestic Tool Mart 1 The Cash Flow A/c No. is the same as General Ledger A/c No for all Entries 2 The Cash Flow Date is the Cash Flow Date for PP000008 3 The Original Doc. No. (from which CF Ledger Entry is derived) is also shown

CASE 11 Stage 1 Start: General Ledger Doc. No. PP000009 is identified for inclusion in Cash Basis Accounts by the program as it has a Liquid Fund A/c General Ledger Entry G/L Document Account Account Source Source Entry No. Document No. Posting Date Type No. Name Description Amount Type No. Reversed 85 PP000009 Mar. 27, 2021 Payment 2920 Bank, Fairway 70,000.00 Bank NBL FALSE LCY Sound Account 86 PP000009 Mar. 27, 2021 Payment 2320 Customers, Fairway −70,000.00 Customer 61000 FALSE Domestic Sound Stage 1 Processing Steps: 1 Entry No. 85 is deleted 2 Entry No. 86 is multiplied by −1 & added to CF Ledger Entry as Entry No. 25 below Stage 1 Completion: Cash Flow Ledger Entry from General ledger Entry Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 33 PP000009 Mar. 27, TRUE 2310 Customers Fairway 70,000.00 Receivables 61000 2021 Domestic Sound Stage 2 Processing Steps: 3 Since Doc. No. PP000009 has a Customer A/c, the program checks Customer Ledger Entries to see if it is applied. The program finds that the Doc. No. PP000009 is applied to Doc. No. 103042 & 103043 Applied Customer Entries Document Currency Closed by Document Posting Date Type Description Cod Original Amount Amount Amount Entry No. 103042 Mar. 9, 2022 Invoice Invoice 1020 54,700.00 54,700.00 54,700.00 81 103043 Mar. 15, 2022 Invoice Invoice 1021 5,625.00 5,625.00 5,625.00 84 Processing Steps: 1 Calculate Multiplication Factor (MF) = Applied Amount/Total AP for Doc. No. 103042 and separately for Doc. No. 103043 2 Create Additional Cash Flow Ledger Entries by multiplying all Entries in Original Doc. No. 1083042 & 103043 by respective MF 3 Entries which do not have Source Type are not processed (Entry No. 75 & 76) Stage 2-Calculate Multiplication Factor from ‘Original’ General Ledger Entry G/L Document Account Entry No. Document No. Posting Date Type No. Account Name Description 75 103042 Mar. 9, 2021 2120 Finished Goods Direct Cost 61000 on Mar. 9, 2021 76 103042 Mar. 9, 2021 7190 Cost of Retail Sold Direct Cost 61000 on Mar. 9, 2021 77 103042 Mar. 9, 2021 Invoice 8110 Sales, Retail - Dom. Invoice 1020 78 103042 Mar. 9, 2021 Invoice 5610 Sales VAT 25% Invoice 1020 79 103042 Mar. 9, 2021 Invoice 6710 Consulting Fees - Dom. Invoice 1020 80 103042 Mar. 9, 2021 Invoice 5611 Sales VAT 10% Invoice 1020 81 103042 Mar. 9, 2021 Invoice 2310 Customers Domestic Invoice 1020 82 103043 Mar. 15, 2021 Invoice 6810 Fees and Charges Rec. - Invoice 1021 Dom. 83 103043 Mar. 15, 2021 Invoice 5610 Sales VAT 25% Invoice 1021 84 103043 Mar. 15, 2021 Invoice 2310 Customers Domestic Invoice 1021 Stage 2-Calculate Multiplication Factor from ‘Original’ General Ledger Entry Source Source Multiplication Amount of CF Entry Entry No. Amount Type No. Reversed Factor (MF) (Amount × MF) 75 −2,593.42 FALSE 76 2,593.42 FALSE 77 −20,000.00 Customer 61000 FALSE −1 20000 78 −5,000.00 Customer 61000 FALSE −1 5000 79 −27,000.00 Customer 61000 FALSE −1 27000 80 −2,700.00 Customer 61000 FALSE −1 2700 81 54,700.000 Customer 61000 FALSE −1 −54700 82 −4,500.000 Customer 61000 FALSE −1 4500 83 −1,125.00 Customer 61000 FALSE −1 1125 84 5,625.00 Customer 61000 FALSE −1 5625 Stage 2 Completion-Subprocess Creates Additional Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 34 PP000009 103042 Mar. 27, TRUE 6110 Sales, Retail - Fairway 20,000.00 Receivables 61000 2021 Dom. Sound 35 PP000009 103042 Mar. 27, TRUE 5610 Sales VAT 25% Fairway 5,000.00 Receivables 61000 2021 Sound 36 PP000009 103042 Mar. 27, TRUE 6710 Consulting Fairway 27,000.00 Receivables 61000 2021 Fees - Dom. Sound 37 PP000009 103042 Mar. 27, TRUE 5811 Sales VAT 10% Fairway 2,700.00 Receivables 61000 2021 Sound 38 PP000009 103043 Mar. 27, TRUE 6810 Fees and Charges Fairway 2,100.00 Receivables 61000 2021 Rec. - Dom. Sound 39 PP000009 103043 Mar. 27, TRUE 5610 Sales VAT 25% Fairway 525.00 Receivables 61000 2021 Sound 40 PP000009 Mar. 27, TRUE 2310 Customers Fairway −57,325.00 Receivables 61000 2021 Domestic Sound Complete Reclassified Cash Flow Ledger Entries Original Cash Flow Cash Flow Account Amount Source Source Entry No. Document No. Doc. No. Date Reclassify Account No. Name Description (LCY) Type No. 33 PP000009 Mar. 27, TRUE 2310 Customers Fairway 70,000.00 Receivables 61000 2021 Domestic Sound 34 PP000009 103042 Mar. 27, TRUE 6110 Sales, Retail - Fairway 20,000.00 Receivables 61000 2021 Dom. Sound 35 PP000009 103042 Mar. 27, TRUE 5610 Sales VAT 25% Fairway 5,000.00 Receivables 61000 2021 Sound 36 PP000009 103042 Mar. 27, TRUE 6710 Consulting Fairway 27,000.00 Receivables 61000 2021 Fees - Dom. Sound 37 PP000009 103042 Mar. 27, TRUE 5611 Sales VAT 10% Fairway 2,700.00 Receivables 61000 2021 Sound 38 PP000009 103043 Mar. 27, TRUE 6810 Fees and Charges Fairway 2,100.00 Receivables 61000 2021 Rec. - Dom. Sound 39 PP000009 103043 Mar. 27, TRUE 5610 Sales VAT 25% Fairway 525.00 Receivables 61000 2021 Sound 40 PP000009 Mar. 27, TRUE 2310 Customers Fairway −57,325.00 Receivables 61000 2021 Domestic Sound 1 The Cash Flow A/c No. is the same as General Ledger A/c No for all Entries 2 The Cash Flow Date is the Cash Flow Date for PP000009 3 The Original Doc. No. (from which CF Ledger Entry is derived) is also shown

The cash flow ledger entries created from the conversion process implemented by system 100 are shown in in the following table:

Original Account Amount Source Source Document No. Entry No. Doc. No Cash Flow Reclassify Cash Flow Name Description (LCY) Type No. PAYMENT0001 1 Jan. 1, FALSE 3110 Capital Contribution 1,000,000.00 Liquid NBL 2020 Stock of cash capital Funds PAYMENT0003 2 Jan. 2, FALSE 5410 Vendors, Lewis Home −2,700.00 Payables 40000 2020 Domestic Furniture PP000001 3 Dec. 9, TRUE 5410 Vendors, London −1,520.00 Payables 10000 2020 Domestic Postmaster PP000001 4 108061 Dec. 9, TRUE 7110 Purch., London −1,216.00 Payables 10000 2020 Retail - Postmaster Dom. PP000001 5 108061 Dec. 9, TRUE 5630 Purchase London −304.00 Payables 10000 2020 VAT 25% Postmaster PP000001 6 Dec. 9, TRUE 5410 Vendors, London 1,520.00 Payables 10000 2020 Domestic Postmaster PP000002 7 Dec. 8, TRUE 5410 Vendors, WalkerHolland −32,750.00 Payables 62000 2020 Domestic PP000002 8 108062 Dec. 8, TRUE 1220 Increases WalkerHolland −26,200.00 Payables 62000 2020 during the Year PP000002 9 108062 Dec. 8, TRUE 5630 Purchase WalkerHolland −6,550.00 Payables 62000 2020 VAT 25% PP000003 10 Dec. 8, TRUE 5410 Vendors, WalkerHolland 32,750.00 Payables 62000 2020 Domestic PP000003 11 Jan. 15, TRUE 2310 Customers Customer 10 30,800.00 Receivables 10000 2020 Domestic PP000003 12 103040 Jan. 15, TRUE 6710 Consulting Customer 10 28,000.00 Receivables 10000 2020 Fees - Dom. PP000003 13 103040 Jan. 15, TRUE 5611 Sales VAT Customer 10 2,800.00 Receivables 10000 2020 10% PP000003 14 Jan. 15, TRUE 2310 Customers Customer 10 −30,800.00 Receivables 10000 2020 Domestic PP000004 15 Jan. 22, FALSE 2310 Customers Customer 10 50,000.00 Receivables 20000 2020 Domestic PP000005 16 Jan. 31, TRUE 5410 Vendors, Vendor 62000 −8,750.00 Payables 62000 2020 Domestic PP000005 17 108064 Jan. 31, TRUE 8130 Repairs and Vendor 62000 −7,000.00 Payables 62000 2020 Maintenance PP000005 18 108064 Jan. 31, TRUE 5630 Purchase Vendor 62000 −1,750.00 Payables 62000 2020 VAT 25% PP000005 19 Jan. 31, TRUE 5410 Vendors, Vendor 62000 8,750.00 Payables 62000 2020 Domestic PP000006 20 Feb. 12, TRUE 2310 Customers Customer 44 18,670.25 Receivables 44171511 2020 Domestic PP000006 21 103041 Feb. 12, TRUE 6110 Sales, Customer 44 14,936.20 Receivables 44171511 2020 Retail - Dom. PP000006 22 103041 Feb. 12, TRUE 5610 Sales VAT Customer 44 3,734.05 Receivables 44171511 2020 25% PP000006 23 Feb. 12, TRUE 2310 Customers Customer 44 −13,670.25 Receivables 44171511 2020 Domestic PP000007 24 Feb. 23, FALSE 3120 Retained Drawing by −57,000.00 Liquid NBL 2020 Earnings Owner Funds PP000008 25 Feb. 27, TRUE 5410 Vendors, Boybridge −10,000.00 Payables 44729910 2021 Domestic Tool Mart PP000008 26 108066 Feb. 27, TRUE 7110 Purch., Boybridge −5,328.83 Payables 44729910 2021 Retail - Tool Mart Dom. PP000008 27 108066 Feb. 27, TRUE 5630 Purchase Boybridge −1,332.21 Payables 44729910 2021 VAT 25% Tool Mart PP000008 28 108066 Feb. 27, TRUE 8130 Repairs and Boybridge −2,671.17 Payables 44729910 2021 Maintenance Tool Mart PP000008 29 108066 Feb. 27, TRUE 5630 Purchase Boybridge −667.70 Payables 44729910 2021 VAT 25% Tool Mart PP000008 30 108067 Feb. 27, TRUE 6710 Consulting Boybridge −5,354.55 Payables 44729910 2021 Fees - Dom. Tool Mart PP000008 31 108067 Feb. 27, TRUE 5631 Purchase Boybridge −545.45 Payables 44729910 2021 VAT 10% Tool Mart PP000008 32 Feb. 27, TRUE 5410 Vendors, Boybridge 16,000.00 Payables 44729910 2021 Domestic Tool Mart PP000009 33 Mar. 27, TRUE 2310 Customers Fairway 70,000.00 Receivables 61000 2021 Domestic Sound PP000009 34 103042 Mar. 27, TRUE 6110 Sales, Fairway 20,000.00 Receivables 61000 2021 Retail - Sound Dom. PP000009 35 103042 Mar. 27, TRUE 5610 Sales VAT Fairway 5,000.00 Receivables 61000 2021 25% Sound PP000009 36 103042 Mar. 27, TRUE 6710 Consulting Fairway 27,000.00 Receivables 61000 2021 Fees - Dom. Sound PP000009 37 103042 Mar. 27, TRUE 5611 Sales VAT Fairway 2,700.00 Receivables 61000 2021 10% Sound PP000009 38 103043 Mar. 27, TRUE 6810 Fees and Fairway 2,100.00 Receivables 61000 2021 Charges Sound Rec. - Dom. PP000009 39 103043 Mar. 27, TRUE 5610 Sales VAT Fairway 525.00 Receivables 61000 2021 25% Sound PP000009 40 Mar. 27, TRUE 2310 Customers Fairway −57,325.99 Receivables 61000 2021 Domestic Sound

The computerized database stores data for the cash basis accounts which are separate and distinct from the accrual basis accounts in the general ledger entries shown in the following table.

Document Customer Remaining Posting Date Type Document No. No. Description Original Amount Amount Amount Jan. 4, 2020 Invoice 103040 10000 Invoice 1018 30,800.00 30,800.00 0.00 Jan. 15, 2020 Payment PP000003 10000 Customer 10 −30,800.00 −30,800.00 0.00 Jan. 19, 2020 Invoice 103041 44171511 Invoice 1019 18,670.25 18,670.25 0.00 Jan. 22, 2020 Payment PP000004 20000 Customer 20 −50,000.00 −50,000.00 −50,000,00 Feb. 12, 2020 Payment PP000006 44171511 Customer 44 −18,670.25 −18,670.25 0.00 Mar. 9, 2021 Invoice 103042 61000 Invoice 1020 54,700.00 54,700.00 0.00 Mar. 15, 2021 Invoice 103043 61000 Invoice 1021 5,625.00 5,625.00 3,000.00 Mar. 22, 2021 Payment PP000009 61000 Fairway Sound −70,000.00 −70,000.00 −12,675.00 On Amount Remaining Posting Date Due Date Open Held Entry No. (LCY) Amt. (LCY) Jan. 4, 2020 Feb. 4, 2020 FALSE 32 30,800.00 0.00 Jan. 15, 2020 Jan. 15, 2020 FALSE 34 −30,800.00 0.00 Jan. 19, 2020 Feb. 2, 2020 FALSE 51 18,670.25 0.00 Jan. 22, 2020 Jan. 22, 2020 TRUE 36 −50,000.00 −50,000.00 Feb. 12, 2020 Feb. 12, 2020 FALSE 53 −18,670.25 0.00 Mar. 9, 2021 Apr. 9, 2021 FALSE 81 54,700.00 0.00 Mar. 15, 2021 Apr. 15, 2021 TRUE 84 5,625.00 3,000.00 Mar. 22, 2021 Mar. 27, 2021 TRUE 86 −70,000.00 −12,675.00 Z Z

The CFS by the Direct Method may be derived by the system 100 from the cash flow ledger entries. The CFS by Direct Method is shown in the following table. The cash flow is summarized into operating, investing and financing sections as is required for GAAP. Other cash flow statements may be generated by system 100, e.g., to meet management or investor requirements.

Cash Flow Details Sum of Amount (LCY) Cash Collections from Customers 164,015.70 Sales, Retail - Dom. 34,936.20 Consulting Fees - Dom. 49,545.45 Fees and Charges Rec. - Dom. 2,100.00 Sales VAT 10% 5,500.00 Sales VAT 25% 9,259.05 Customers Domestic 62,675.00 (Unallocated Receipts) Cash Payment to Suppliers (33,065.45) Purch., Retail - Dom. (6,544.83) Repairs and Maintenance (9,671.17) Purchase VAT 10% (545.45) Purchase VAT 25% (10,604.00) Vendors, Domestic (5,700.00) (Unallocated Payments) Investing Cash Flow (26,200.00) Increases during the Year (26,200.00) Financing Cash Flow 943,000.00 Capital Stock 1,000,000.00 Retained Earnings (57,000.00) Net Cash Flow for the Period 1,047,750.25

The following table is an example of the chart of general ledger accounts.

Income/ Account Account No. Name Balance Type Totaling Category 10000 Suspense Accounts Balance Sheet Posting 1002 ASSETS Balance Sheet Begin-Total Assets 1003 Fixed Assets Balance Sheet Begin-Total Assets 1005 Tangible Fixed Assets Balance Sheet Begin-Total Assets 1100 Land and Buildings Balance Sheet Begin-Total Assets 1110 Land and Buildings Balance Sheet Posting Assets 1120 Increases during the Year Balance Sheet Posting Assets 1130 Decreases during the Year Balance Sheet Posting Assets 1140 Accum. Depreciation, Buildings Balance Sheet Posting Assets 1190 Land and Buildings, Total Balance Sheet End-Total 1100 . . . 1190 Assets 1200 Operating Equipment Balance Sheet Begin-Total Assets 1210 Operating Equipment Balance Sheet Posting Assets 1220 Increases during the Year Balance Sheet Posting Assets 1230 Decreases during the Year Balance Sheet Posting Assets 1240 Accum. Depr., Oper. Equip. Balance Sheet Posting Assets 1290 Operating Equipment, Total Balance Sheet End-Total 1200 . . . 1290 Assets 1300 Vehicles Balance Sheet Begin-Total Assets 1310 Vehicles Balance Sheet Posting Assets 1320 Increases during the Year Balance Sheet Posting Assets 1330 Decreases during the Year Balance Sheet Posting Assets 1340 Accum. Depreciation, Vehicles Balance Sheet Posting Assets 1390 Vehicles, Total Balance Sheet End-Total 1300 . . . 1390 Assets 1395 Tangible Fixed Assets, Total Balance Sheet End-Total 1005 . . . 1395 Assets 1999 Fixed Assets, Total Balance Sheet End-Total 1003 . . . 1999 Assets 2000 Current Assets Balance Sheet Begin-Total Assets 2100 Inventory Balance Sheet Begin-Total Assets 2110 Resale Items Balance Sheet Posting Assets 2111 Resale Items (Interim) Balance Sheet Posting Assets 2112 Cost of Resale Sold (Interim) Balance Sheet Posting Assets 2120 Finished Goods Balance Sheet Posting Assets 2121 Finished Goods (Interim) Balance Sheet Posting Assets 2130 Raw Materials Balance Sheet Posting Assets 2131 Raw Materials (Interim) Balance Sheet Posting Assets 2132 Cost of Raw Mat. Sold (Interim) Balance Sheet Posting Assets 2140 WIP Account, Finished goods Balance Sheet Posting Assets 2180 Primo Inventory Balance Sheet Posting Assets 2190 Inventory, Total Balance Sheet End-Total 2100 . . . 2190 Assets 2200 Job WIP Balance Sheet Begin-Total Assets 2210 WIP Sales Balance Sheet Begin-Total Assets 2211 WIP Job Sales Balance Sheet Posting Assets 2212 Invoiced Job Sales Balance Sheet Posting Assets 2220 WIP Sales, Total Balance Sheet End-Total 2210 . . . 2220 Assets 2230 WIP Costs Balance Sheet Begin-Total Assets 2231 WIP Job Costs Balance Sheet Posting Assets 2232 Accrued Job Costs Balance Sheet Posting Assets 2240 WIP Costs, Total Balance Sheet End-Total 2230 . . . 2240 Assets 2290 Job WIP, Total Balance Sheet End-Total 2200 . . . 2290 Assets 2300 Accounts Receivable Balance Sheet Begin-Total Assets 2310 Customers Domestic Balance Sheet Posting Assets 2320 Customers, Foreign Balance Sheet Posting Assets 2325 Customers, Intercompany Balance Sheet Posting Assets 2330 Accrued Interest Balance Sheet Posting Assets 2340 Other Receivables Balance Sheet Posting Assets 2390 Accounts Receivable, Total Balance Sheet End-Total 2300 . . . 2390 Assets 2400 Purchase Prepayments Balance Sheet Begin-Total Assets 2410 Vendor Prepayments VAT 0% Balance Sheet Posting Assets 2420 Vendor Prepayments VAT 10% Balance Sheet Posting Assets 2430 Vendor Prepayments VAT 25% Balance Sheet Posting Assets 2440 Purchase Prepayments, Total Balance Sheet End-Total 2400 . . . 2440 Assets 2800 Securities Balance Sheet Begin-Total Assets 2810 Bonds Balance Sheet Posting Assets 2890 Securities, Total Balance Sheet End-Total 2800 . . . 2890 Assets 2900 Liquid Assets Balance Sheet Begin-Total Assets 2910 Cash Balance Sheet Posting Assets 2920 Bank, LCY Balance Sheet Posting Assets 2930 Bank Currencies Balance Sheet Posting Assets 2940 Giro Account Balance Sheet Posting Assets 2990 Liquid Assets, Total Balance Sheet End-Total 2900 . . . 2990 Assets 2995 Current Assets, Total Balance Sheet End-Total 2000 . . . 2995 Assets 2999 TOTAL ASSETS Balance Sheet End-Total 1002 . . . 2999 Assets 3000 LIABILITIES AND EQUITY Balance Sheet Heading 3100 Stockholder's Equity Balance Sheet Heading Equity 3110 Capital Stock Balance Sheet Posting Equity 3120 Retained Earnings Balance Sheet Posting Equity

The following table provides an example of the chart of cash flow accounts. The general ledger chart of accounts is created by the administrator/user of the system and the cash flow chart of accounts reports are automatically generated by the system 100. Any change in the general ledger chart of accounts is automatically represented in the cash flow chart of accounts.

Account No. Name Type Totaling 10000 Suspense Account Entry 1002 ASSETS Begin-Total 1003 Fixed Assets Begin-Total 1005 Tangible Fixed Assets Begin-Total 1100 Land and Buildings Begin-Total 1110 Land and Buildings Entry 1120 Increases during the Year Entry 1130 Decreases during the Year Entry 1140 Accum. Depreciation, Buildings Entry 1190 Land and Buildings, Total End-Total 1100 . . . 1190 1200 Operating Equipment Begin-Total 1210 Operating Equipment Entry 1220 Increases during the Year Entry 1230 Decreases during the Year Entry 1240 Accum. Depr., Oper. Equip. Entry 1290 Operating Equipment, Total End-Total 1200 . . . 1290 1300 Vehicles Begin-Total 1310 Vehicles Entry 1320 Increases during the Year Entry 1330 Decreases during the Year Entry 1340 Accum. Depreciation, Vehicles Entry 1390 Vehicles, Total End-Total 1300 . . . 1390 1395 Tangible Fixed Assets, Total End-Total 1005 . . . 1395 1999 Fixed Assets, Total End-Total 1003 . . . 1999 2000 Current Assets Begin-Total 0002 . . . 2000 2100 Inventory Begin-Total 2110 Resale Items Entry 2111 Resale Items (Interim) Entry 2112 Cost of Resale Sold (Interim) Entry 2120 Finished Goods Entry 2121 Finished Goods (Interim) Entry 2130 Raw Materials Entry 2131 Raw Materials (Interim) Entry 2132 Cost of Raw Mat. Sold (Interim) Entry 2140 WIP Account, Finished goods Entry 2180 Primo Inventory Entry 2190 Inventory, Total End-Total 2100 . . . 2190 2200 Job WIP Begin-Total 2210 WIP Sales Begin-Total 2211 WIP Job Sales Entry 2212 Invoiced Job Sales Entry 2220 WIP Sales, Total End-Total 2210 . . . 2220 2230 WIP Costs Begin-Total 2231 WIP Job Costs Entry 2232 Accrued Job Costs Entry 2240 WIP Costs, Total End-Total 2230 . . . 2240 2290 Job WIP, Total End-Total 2200 . . . 2290 2300 Accounts Receivable Begin-Total 2310 Customers Domestic Entry 2320 Customers, Foreign Entry 2325 Customers, Intercompany Entry 2330 Accrued Interest Entry 2340 Other Receivables Entry 2390 Accounts Receivable, Total End-Total 2300 . . . 2390 2400 Purchase Prepayments Begin-Total 2410 Vendor Prepayments VAT 0% Entry 2420 Vendor Prepayments VAT 10% Entry 2430 Vendor Prepayments VAT 25% Entry 2440 Purchase Prepayments, Total End-Total 2400 . . . 2440 2800 Securities Begin-Total 2810 Bonds Entry 2890 Securities, Total End-Total 2800 . . . 2890 2900 Liquid Assets Begin-Total 2910 Cash Entry 2920 Bank, LCY Entry 2930 Bank Currencies Entry 2940 Giro Account Entry 2990 Liquid Assets, Total End-Total 2900 . . . 2990 2995 Current Assets, Total End-Total 2000 . . . 2995 2999 TOTAL ASSETS End-Total 1002 . . . 2999 3000 LIABILITIES AND EQUITY Heading 3100 Stockholder's Equity Heading 3110 Capital Stock Entry

FIGS. 8-10 summarize the sub-processes depicted in and described by FIGS. 3-5 .

The embodiments of the devices, systems and methods described herein may be implemented in a combination of both hardware and software. These embodiments may be implemented on programmable computers, each computer including at least one processor, a data storage system (including volatile memory or non-volatile memory or other data storage elements or a combination thereof), and at least one communication interface.

Program code is applied to input data to perform the functions described herein and to generate output information. The output information is applied to one or more output devices. In some embodiments, the communication interface may be a network communication interface. In embodiments in which elements may be combined, the communication interface may be a software communication interface, such as those for inter-process communication. In still other embodiments, there may be a combination of communication interfaces implemented as hardware, software, and combination thereof.

One should appreciate that the systems and methods described herein may provide different example technical effects and solutions e.g. better memory usage, improved processing, improved bandwidth usage, reduced errors, and auditable data. Further, the system 100 can use the new database 38 to implement the CFS by direct method which is an easier to understand process that improves fraud detection, better forecasts of future cash flows, and enables better management planning. The new database 38 is independent of the income statement and balance sheet. The system 100 can efficiently, quickly and automatically generate the new database 38 by reading, extracting, and modifying data without manual intervention. The system 100 generates the database 38 storing accurate data that is auditable and can be tracked. The system 100 requires a hardware processor 20 and memory 30 (storing instructions 42) given the high volume of transaction data. Further, the hardware processor 20 executes the instructions 42 for complex calculations to generate the CF ledger entries for the database 38. Reversal entries can trigger immediate and automatic erasure of CF ledger entries by the processor 20. Further, a change in application of receipt or payment require recalculations by the processor 20. The system 100 can track allocation of multiple invoices for each receipt or payment. The processor 20 can execute updated instructions to implement changing rules.

The following discussion provides many example embodiments. Although each embodiment represents a single combination of inventive elements, other examples may include all possible combinations of the disclosed elements. Thus if one embodiment comprises elements A, B, and C, and a second embodiment comprises elements B and D, other remaining combinations of A, B, C, or D, may also be used.

The term “connected” or “coupled to” may include both direct coupling (in which two elements that are coupled to each other contact each other) and indirect coupling (in which at least one additional element is located between the two elements).

The technical solution of embodiments may be in the form of a software product. The software product may be stored in a non-volatile or non-transitory storage medium, which can be a compact disk read-only memory (CD-ROM), a USB flash disk, or a removable hard disk. The software product includes a number of instructions that enable a computer device (personal computer, server, or network device) to execute the methods provided by the embodiments.

Although the embodiments have been described in detail, it should be understood that various changes, substitutions and alterations can be made herein without departing from the scope as defined by the appended claims.

Moreover, the scope of the present application is not intended to be limited to the particular embodiments of the process, machine, manufacture, composition of matter, means, methods and steps described in the specification. As one of ordinary skill in the art will readily appreciate from the disclosure of the present invention, processes, machines, manufacture, compositions of matter, means, methods, or steps, presently existing or later to be developed, that perform substantially the same function or achieve substantially the same result as the corresponding embodiments described herein may be utilized. Accordingly, the appended claims are intended to include within their scope such processes, machines, manufacture, compositions of matter, means, methods, or steps

As can be understood, the examples described above and illustrated are intended to be exemplary only. The scope is indicated by the appended claims. 

What is claimed is:
 1. A system comprising: a non-transitory memory storing instructions; and a hardware processor for generation and storage of a computerized cash flow ledger entries database, the hardware processor further configured for retrieval and visualizations of data from the cash flow ledger entries database to implement a statement of cash flows by a direct process to reduce use of computational resources by obviating a need to maintain cash accounts in the memory; and a client device having an interface to provide the visualizations of data from the cash flow ledger entries database implementing the statement of cash flows by the direct process and to transmit data to the hardware processor to update the visualization.
 2. The system of claim 1 wherein the non-transitory memory is further configured to store general ledger entries and the hardware processor is further configured to: automatically extract cash related entries from the general ledger entries; modify the extracted cash related entries from the general ledger entries; create cash flow ledger entries from the modified cash related entries; and populate the cash flow ledger entries database with the cash flow ledger entries.
 3. The system of claim 2 wherein the memory is further configured to store customer ledger entries and vendor ledger entries, and wherein the hardware processor is further configured to: create additional cash flow ledger entries by extracting and modifying data from the customer ledger entries, the vendor ledger entries, and the general ledger entries; and populate the Cash Flow Ledger entries database with the additional Cash Flow Ledger entries.
 4. The system of claim 3 wherein the hardware processor updates the visualizations of data from the cash flow ledger entries database based on the populated the Cash Flow Ledger entries database.
 5. The system of claim 1 wherein the non-transitory memory is further configured to store accrual method accounts and the hardware processor is further configured to derive cash accounts based on the accrual method accounts and the computerized cash flow ledger entries database to further reduce use of computational resources by obviating the need to maintain cash accounts in the memory.
 6. The system of claim 5 wherein the hardware processor derives the cash accounts based on the accrual method accounts by storing only accrual method accounts in the memory and not cash accounts in the memory.
 7. The system of claim 1 wherein the hardware processor is further configured to modify computerized cash flow ledger entries database to create A new computerized database containing only data relating to cash transactions comprises maintaining a record of modification of each database source to maintain a traceability of data comprising each database to provide enhanced data security.
 8. A method comprising: using a hardware processor for generation and storage of a computerized cash flow ledger entries database, further for retrieval and visualizations of data from the cash flow ledger entries database to implement a statement of cash flows by a direct process. to reduce use of computational resources by obviating a need to maintain cash accounts in a non-transitory memory.
 9. The method of claim 8 further comprising using a client device having an interface to provide the visualizations of data from the cash flow ledger entries database implementing the statement of cash flows by the direct process and to transmit data to the hardware processor to update the visualization.
 10. The method of claim 8 further comprising: storing general ledger entries in a memory, and using the hardware processor to automatically extract cash related entries from the general ledger entries; modifying the extracted cash related entries from the general ledger entries, create cash flow ledger entries from the modified cash related entries; and populating the cash flow ledger entries database with the cash flow ledger entries.
 11. The method of claim 10 further comprising: storing customer ledger entries and vendor ledger entries in the memory; using the hardware processor to create additional cash flow ledger entries by extracting and modifying data from the customer ledger entries, the vendor ledger entries, and the general ledger entries; and using the hardware processor to populate the cash flow ledger entries database with the additional cash flow ledger entries.
 12. The method of claim 8, further comprising: storing accrual method accounts in a memory of a computer system; and deriving cash accounts based on the accrual method accounts and the computerized cash flow ledger entries database to further reduce use of computational resources by obviating maintaining cash accounts in the memory.
 13. The method of claim 9, wherein deriving the cash accounts based on accrual method accounts comprises storing only accrual method accounts in the non-transitory memory and not cash accounts in the memory.
 14. The method of claim 8, wherein modifying the databases to create the computerized cash flow ledger entries database containing only data relating to cash transactions comprises maintaining a record of modification of each database to maintain a traceability of data comprising each database to provide enhanced data security
 15. A system for electrical computers, digital processing, and visual display, the system comprising: a non-transitory memory storing instructions; and a hardware processor for modifying databases to create a new computerized database containing only data relating to cash transactions, wherein the new computerized database is accessible by a client device having an interface and a cloud server to produce different cash accounting reports, including a statement of cash flows by a direct method.
 16. A method for electrical computers, digital processing, and visual display, the method comprising: modifying databases to create a new computerized database containing only data relating to cash transactions, wherein the new computerized database is accessible by a client device having an interface and a cloud server to produce different cash accounting reports, including a statement of cash flows by a direct method.
 17. The method of claim 16, further comprising: storing accrual method accounts in a memory of a computer system; and deriving cash accounts based on the accrual method accounts and the new computerized database to reduce use of computational resources by obviating a need to maintain cash accounts in the memory.
 18. The method of claim 17, wherein deriving the cash accounts based on the accrual method accounts comprises storing only accrual method accounts in the memory and not cash accounts in the memory.
 19. The method of claim 16, wherein modifying the databases to create the new computerized database containing only data relating to cash transactions comprises maintaining a record of modification of each database to maintain a traceability of data comprising each database to provide enhanced data security.
 20. The method of claim 16 further comprising generating visualizations of data from the new computerized database and providing the visualizations for display at the interface of the client device. 